Canadian Stocks Gain as Energy, Material Companies Lead Rally

Canadian stocks gained for a fourth day as commodity producers rallied after the European Central Bank delayed its withdrawal of stimulus measures, offsetting declines by banks on lower profits.

Talisman Energy Inc. jumped 1.5 percent after it got a revolving line of credit and oil prices advanced. Teck Resources Ltd. rose 1.7 percent as prices of gold, copper and silver advanced. Toronto-Dominion Bank, the country’s second-largest bank by assets, slid 2.4 percent after reporting fourth-quarter net income dropped 1.6 percent. Canadian Imperial Bank of Commerce dropped 1.3 percent as profit fell 22 percent.

The Standard & Poor’s/TSX Composite Index rose 28.54 points, or 0.2 percent, to 13,176.89 as of 10:41 a.m. in Toronto. The benchmark for Canadian stocks rose yesterday to its highest level since September 2008.

“The European Central Bank has been supporting the markets,” said Blair Falconer, who oversees about C$900 million ($895 million) as a money manager at HSBC Securities (Canada) Inc. in Toronto. “The financial sector is not performing well today, but we’ve really had some strong commodity moves overnight and that’s supporting the Canadian dollar and therefore the stock market.”

The S&P/TSX has gained for five-straight months, surging 15 percent from July through November. Raw-material companies led the advance as commodity prices increased in part on demand from emerging markets such as China, whose economy may grow 10 percent this year, according to the median forecast in a Bloomberg survey of economists.

Unlimited Loans

Stocks and commodities advanced after President Jean-Claude Trichet told reporters at a press conference in Frankfurt the ECB will offer banks unlimited loans through the first quarter over periods of seven days, one month and three months.

Canada’s currency climbed for the second day, rising 1 percent to C$1.0066 per U.S. dollar, while crude oil futures for January delivery increased 43 cents, or 0.5 percent, to $87.18 a barrel. Oil earlier fell as low as $86.27 a barrel.

Talisman Energy jumped 1.5 percent to C$20.14. The Calgary- based oil and gas company got a C$3.85 billion ($3.78 billion) revolving line of credit for general corporate purposes, according to a person familiar with the deal.

Teck Resources rose 1.7 percent to C$53.36 as material stocks gained 0.4 percent. Barrick Gold Corp., the world’s largest producer of the metal, jumped 0.6 percent to C$53.60.

Toronto-Dominion declined 2.4 percent to C$73.48. CIBC fell 1.3 percent to C$80. Both lenders reported lower fourth-quarter profits as trading income declined.

Toronto-Dominion said net income for the period ended Oct. 31 dropped 1.6 percent to C$994 million ($908 million), or C$1.07 a share. CIBC’s profit fell 22 percent to C$500 million, or C$1.17 a share. Before one-time items, Toronto-Dominion missed analyst estimates, while CIBC topped expectations.

Bombardier Inc. declined 3.4 percent to C$4.61. The world’s third-biggest civil-aircraft manufacturer posted third-quarter earnings excluding some items of 8 cents a share, missing the average analyst estimate in a Bloomberg survey by a penny.

To contact the reporter on this story: Inyoung Hwang in New York at ihwang7@bloomberg.net.

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

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