Canada Stocks Pare Quarterly Loss as Gold, Energy Producers' Shares Rise

Canadian stocks rose, paring the biggest quarterly decline since 2008 in the main equity index, as energy and gold producers rallied.

Barrick Gold Corp., the world’s largest producer of the metal, gained 1.9 percent as signs that the economic recovery remains fragile boosted the metal. Canadian Natural Resources Ltd., Canada’s second-biggest energy company by market value, advanced 0.8 percent as natural gas futures climbed.

The Standard & Poor’s/TSX Composite Index rose 30.59 points, or 0.3 percent, to 11,294.42 after falling 3 percent yesterday. The stock benchmark has declined 4 percent this month and 6.2 percent in the second quarter, the biggest slide since the collapse of the U.S. mortgage market triggered a 24 percent drop in the benchmark in the final quarter of 2008.

“It’s logical we’ll get some bounce,” said Doug Davis, chief executive officer of Davis-Rea Ltd. in Toronto, which manages C$400 million ($378 million). “Our commodity-based economy has been doing well. People have been feeling better about things. There’s a fair amount of confidence in Canada.”

The S&P/TSX fell the most in a year yesterday after the U.S. Conference Board lowered its index of Chinese leading economic indicators and commodity futures retreated. The stock benchmark has dropped 5.4 percent since June 21 as the sales of new and existing U.S. homes failed to meet economists’ estimates, speculation of a European sovereign debt default increased and energy futures declined on weather forecasts.

Most energy producers advanced as natural gas futures climbed with forecasts for hot weather in the U.S. Northeast for next week.

Production Estimate

Canadian Natural rose 0.8 percent to C$35.33 after increasing its estimate for June production from the Horizon oil sands project. Enbridge Inc., the country’s biggest pipeline company, gained 2.2 percent to C$49.58 after saying it will invest $500 million in the Cedar Point Wind Energy Project in Colorado. Cenovus Energy Inc., the oil company spun off from EnCana Corp. in December, rallied 2 percent to C$27.40.

Gold-mining companies climbed as the metal traded near an all-time high. An ADP Employer Services survey showed U.S. employers added fewer new jobs in June than most economists in a Bloomberg survey forecast, and a U.S. Federal Reserve Bank president said the recovery faces risks from the European debt crisis.

Barrick increased 1.9 percent to C$48.32. Goldcorp Inc., the No. 2 Canadian company in the industry by revenue, advanced 1.6 percent to C$46.61.

Wireless Carriers

Rogers Communications Inc., Canada’s largest wireless carrier, fell for a fifth day, slipping 1 percent to C$34.78, after saying it will offer an unlimited talk and texting plan. Desjardins Securities analyst Maher Yaghi told clients that of the three largest wireless carriers in the country, Rogers is likely to see the biggest share-price impact from the introduction of such potentially margin-shrinking plans in the Canadian market, while BCE Inc. will be the least affected.

BCE, the country’s biggest phone company, rose 2 percent to C$31.06.

Westport Innovations Inc. led the S&P/TSX with a 4.4 percent climb to C$16.75. The maker of automotive engines that run on alternative fuel was raised to “outperform” from “market perform” at Northland Securities Inc.

Magna International Inc., Canada’s largest auto-parts maker, jumped 3.7 percent to C$70.13, erasing most of a 5.8 percent loss from yesterday. Loblaws Cos., the country’s biggest grocer, increased 1.8 percent to C$38.61 to end an eight-day streak of declines, the longest since 2007.

To contact the reporters on this story: Rita Nazareth in New York at rnazareth@bloomberg.net; Matt Walcoff in Toronto at mwalcoff1@bloomberg.net

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