Canadian Stocks Rise as RIM, Precious-Metals Producers Advance
Canadian stocks rose as Research In Motion Ltd. rallied on speculation the BlackBerry maker may try to undercut Apple Inc.’s iPad, while precious-metals producers gained amid renewed concern over European government debt.
RIM advanced 5.7 percent after saying it will sell its PlayBook tablet computer for less than $500. Goldcorp Inc., the world’s second-largest gold producer by market value, increased 1.7 percent as gold and silver rebounded from lows reached after settlement yesterday. First Quantum Minerals Ltd., Canada’s second-biggest publicly traded copper producer, declined 4.5 percent after reporting financial results that missed the average analyst estimate for a third quarter.
“There’s nothing I would see in the markets that would imply a significant reversal of the stealth bull market we’ve been in for most of this year,” said Thomas Caldwell, chief executive officer of Caldwell Securities Ltd., which manages about C$1 billion ($995 million) in Toronto. “There’s a lot of uncertainty coupled with a lot of angst and fear and polarization. All of that notwithstanding, the economy is chugging away.”
The Standard & Poor’s/TSX Composite Index climbed 26.01 points, or 0.2 percent, to 12,942.64.
The S&P/TSX surged 3 percent, led by raw-materials and energy stocks, in the three sessions after the U.S. Federal Reserve announced a $600 billion asset-purchasing program last week. The Canadian benchmark retreated 1 percent yesterday as international criticism of the Fed program, which may weaken the U.S. dollar by increasing the money supply, intensified.
RIM jumped 5.7 percent to C$58.61 after the company said it will sell the PlayBook for less than the average iPad. Shares of the Waterloo, Ontario, company have soared 17 percent since Oct. 22, the trading day before it demonstrated a working PlayBook at an Adobe Systems Inc. conference.
Precious-metals companies rose as gold gained more than 1 percent from where it stood at the close of TSX trading yesterday.
London clearing house LCH Clearnet Ltd. increased margin requirements for trading in Irish government bonds as concerns over the size of the country’s budget deficit have weakened its debt securities. Ten-year government bond yields rose in the U.K., Spain, Greece, Portugal and Ireland.
Goldcorp Inc. gained 1.7 percent to C$47.43. Silver reseller Silver Wheaton Corp. advanced 6.7 percent to C$34.71 after tumbling 8.1 percent yesterday. Barrick Gold Corp., the world’s biggest gold-mining company, increased 1.2 percent to C$51.84.
Copper producers First Quantum and Quadra FNX Mining Ltd., dropped after their quarterly profits trailed analyst forecasts.
First Quantum declined 4.5 percent to C$91 after missing the average of 14 analyst estimates by 11 percent, excluding certain items. Quadra FNX lost 7.6 percent to C$14.70 after reporting third-quarter earnings 17 percent short of the average estimate, excluding certain items.
PetroBakken Energy Ltd. slumped 6.1 percent to C$20.60 after analysts at Royal Bank of Canada and Raymond James Financial Inc. cut their ratings on the stock. The company, which explores for oil and gas in Canada, reported earnings on Nov. 8 that trailed analyst estimates.
Electronic-whiteboard maker Smart Technologies Inc. plunged 33 percent to a record low C$8.90 after cutting its 2011 revenue forecast. The company had its initial public offering at $17 a share in July.
Sino-Forest Corp., Canada’s biggest forestry company by market value, climbed 2.8 percent to C$21.83 after reporting third-quarter earnings that beat the average of nine analyst estimates by 11 percent, excluding certain items. Sino-Forest, which produces lumber in China, has jumped 28 percent since the end of September.
Ivanhoe Energy Inc., which produces oil and gas in China, sank 7.4 percent to C$2.50. China increased reserve requirements for some of its banks in an attempt to cool its economy and prevent inflation, according to a person with knowledge of the matter.
Avala Resources Ltd., a gold and copper exploration company spun off from Dundee Precious Metals Inc. in July, jumped 43 percent to C$1.43 after announcing what it called a “significant new discovery” on its project in Serbia.
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