Canadian stocks rose the most in two months as oil and metals surged on a weaker U.S. dollar and companies including Suncor Energy Inc. and Manulife Financial Corp. reported earnings that beat analysts’ estimates.
Suncor, Canada’s largest oil and gas producer, advanced 7.9 percent after surpassing the average analyst profit forecast by 8.3 percent. Barrick Gold Corp., the world’s largest gold producer, gained 2.2 percent as the metal jumped 3.2 percent. Potash Corp. of Saskatchewan Inc., the world’s biggest fertilizer producer by market value, fell 3.5 percent after the Canadian government blocked BHP Billiton Ltd.’s takeover bid.
The Standard & Poor’s/TSX Composite Index increased 224.44 points, or 1.8 percent, to 12,895.56 as of 3 p.m. in Toronto after touching a two-year intraday high of 12,919.80.
“We had better results from Manulife, which has been a drag on the market for quite some time,” said Stephen Gauthier, who helps manage C$500 million ($499 million) as a money manager at Fin-XO Securities in Montreal. “We also had good results from Suncor, apart from the fact there was a delayed reaction to the Fed announcement yesterday. All of these things are helping at the same time.”
The Thomson Reuters/Jefferies CRB Commodity Price Index has soared 20 percent over the last four months through yesterday as the U.S. dollar has slumped on concerns that U.S. Federal Reserve stimulus policy would increase the money supply, weakening the currency. Yesterday, the Fed said it will buy an additional $600 billion of Treasuries through June.
The CRB index extended a two-year high today as the U.S. dollar fell against all other major currencies.
Crude oil climbed for a fourth day, rallying 1.9 percent to $86.29 a barrel. The S&P/TSX Energy Index rose the most in five months to a two-year high.
Suncor gained 7.9 percent, the most in more than a year, to C$35.49 after reporting production that topped the estimate of George Toriola, an analyst at UBS AG, by 2.6 percent. Canadian Oil Sands Trust, the largest owner of the Syncrude project, increased 5.2 percent to C$27.49.
Canadian Natural Resources Ltd., the country’s second- largest energy producer by market value, beat the average third- quarter profit forecast of analysts by 12 percent, excluding certain items. The shares advanced 4 percent to C$39.25.
Among S&P/TSX companies that have reported financial results since Oct. 7, 58 have beaten the average analyst estimate while 32 have fallen short.
Gold futures soared as much as 3.5 percent, the most intraday since March 2009, and an index of S&P/TSX gold companies rose to a record. Silver surged as much as 6.8 percent.
Barrick climbed 2.2 percent to C$49.74. Kinross Gold Corp., Canada’s third-largest gold producer, rallied 4.3 percent to C$18.70 after surpassing the average analyst estimate for third- quarter earnings by 13 percent, excluding certain items. Yamana Gold Inc., the No. 4 producer in Canada, jumped 5.9 percent to C$11.50 after its adjusted earnings beat estimates by 13 percent.
Silver reseller Silver Wheaton Corp. surged 8.1 percent to C$32.22. Silvercorp Metals Inc., which mines in China, soared 17 percent, the most since February 2009, to C$11.75. Gabriel Resources Ltd., which is developing silver and gold projects in Romania, rallied 11 percent to C$6.90. All three prices are records.
Manulife, North America’s third-largest insurer, rose 7.8 percent to C$13.91. The company reported a third-quarter loss of 55 cents a share, compared with the average analyst estimate of 78 cents a share, excluding certain items.
Earlier today, the owner of John Hancock Financial Services Inc. gained as much as 10 percent, the most intraday since April 2009.
Potash Corp. dropped 3.5 percent to C$141.10 after Canadian Industry Minister Tony Clement said a BHP takeover would not provide a “net benefit” to the country. BHP had bid $40 billion for the company. Government approval of a takeover would be necessary because BHP is a foreign company.
Canada’s second-largest fertilizer producer, Agrium Inc., declined for a fourth day, decreasing 3 percent to C$83.04.
Valeant Pharmaceuticals International, Inc., the country’s biggest publicly traded pharmaceutical company, lost 2.9 percent to C$27.53 after reporting third-quarter revenue that missed the average analyst forecast by 5.3 percent.
In a press release, Valeant Chief Executive Officer J. Michael Pearson called the financial results of the former Biovail Corp. part of the company “disappointing.” Biovail and Valeant merged in September.
Copper producer Taseko Mines Ltd. slumped for a third day, retreating 5.1 percent to C$4.69. Yesterday, the shares plunged 25 percent after the Canadian government rejected plans for a new mine in British Columbia on environmental grounds.
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