Canadian Stocks Rise as Oil, Metals Advance on Japan Bond Pledge
Canadian stocks rose for the first time in six days as oil and metal prices gained after Japan pledged to buy European bonds to ease the sovereign-debt crisis.
Cenovus Energy Inc., Canada’s fifth-largest energy company, increased 1.9 percent as crude oil advanced as much as 1.2 percent. Goldcorp Inc., the world’s second-largest gold producer by market value, climbed 2 percent after releasing a production forecast. Copper producer Taseko Mines Ltd. surged 15 percent after announcing what it called “highly successful” drilling results at a niobium-mining project.
The Standard & Poor’s/TSX Composite Index rose 117.84 points, or 0.9 percent, to 13,362.96 at 10:24 a.m. in Toronto.
The S&P/TSX fell 1.5 percent this month through yesterday as gold and copper futures dropped at least 3.3 percent. Gold declined as reports of expansion in U.S. manufacturing and services reduced demand for precious metals, while copper retreated on concerns China might raise interest rates.
Oil and base metals advanced today after Japanese Finance Minister Yoshihiko Noda said Japan will buy bonds issued by the European Financial Stability Facility this month.
Crude futures climbed for a second day after losing 3.7 percent last week. A Bloomberg survey showed most analysts forecast a drop in inventories in tomorrow’s weekly report from the U.S. Energy Department.
Cenovus increased 1.9 percent to C$32.56. Suncor Energy Inc., Canada’s largest oil and gas producer, gained 0.7 percent to C$37.10. Canadian Natural Resources Ltd., the country’s second-biggest energy company by market value, rose 1.4 percent to C$42.17.
Copper advanced for the first time in four days in New York. Teck Resources Ltd., Canada’s largest base-metals and coal producer, climbed for the first time in a week, increasing 2.5 percent to C$62.01. First Quantum Minerals Ltd., the country’s second-biggest publicly traded copper producer, rallied 3.9 percent to C$119.11.
Taseko soared 15 percent, the most in six months, to C$5.76 after announcement the drilling results from its Aley Niobium Project in British Columbia. Niobium is used in steelmaking.
Goldcorp gained 2 percent to C$43.49 after forecasting a 7.1 percent increase in gold production for 2011. Barrick Gold Corp., the world’s largest gold producer, advanced 1.1 percent to C$49.26. Silver reseller Silver Wheaton Corp. increased 2.1 percent to C$34.79.
The S&P/TSX Banks Index climbed the most in three weeks. Royal Bank of Canada, the country’s largest lender by assets, rallied 1.2 percent to C$52.31 after Darko Mihelic, an analyst at Cormark Securities Inc., named it a “top pick.” Toronto- Dominion Bank, its largest competitor, rose 0.6 percent to C$74.14.
To contact the reporter on this story; Matt Walcoff in Toronto at email@example.com.
To contact the editor responsible for this story: Nick Baker at firstname.lastname@example.org.