Canadian Stocks Rise on Gains by Fertilizer, Energy Producers

Canadian stocks rose, extending a weekly gain, as fertilizer producers advanced and energy companies rallied along with natural gas prices.

Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer by market value, increased 3.4 percent after the U.S. Agriculture Department said exporters sold 1.25 million metric tons of corn to unknown buyers. BlackBerry maker Research In Motion Ltd. (RIM) plunged 10 percent after forecasting a smaller profit than most analysts had estimated. Encana Corp. (ECA), Canada’s largest natural gas producer, climbed 2.4 percent.

The Standard & Poor’s/TSX Composite Index rose 56.4 points, or 0.4 percent, to 14,085.77 at 1:32 p.m. in Toronto. The index has gained 2.1 percent this week.

“People are comfortable taking long positions again,” said Stephen Gauthier, who helps oversee C$600 million ($611 million) as a money manager at Fin-XO Securities in Montreal. “Ten days ago, the situation in Libya seemed out of control and the situation in Japan seemed out of control.”

The S&P/TSX had slipped 0.8 percent this month through yesterday, reflecting the impact of the March 11 earthquake and tsunami in Japan and the escalation of the Libyan civil war. The equity benchmark hasn’t had a monthly decline since June.

Fertilizer producers rallied. Wheat may rise as dry weather in the U.S. threatens crops, said Mark Schultz, chief analyst at Northstar Commodity Investment Co. in Minneapolis.

Potash, Agrium

Potash Corp. increased 3.4 percent to C$56.36. Agrium Inc. (AGU), Canada’s second-largest fertilizer producer, gained 2.3 percent to C$89.04.

S&P/TSX energy companies advanced for the first time in four days as natural gas climbed on forecasts for unseasonably cold weather in the eastern U.S.

Encana increased 2.4 percent to an eight-month intraday high of C$34.23. Talisman Energy Inc. (TLM), an oil and gas producer with operations in North America, the North Sea and Indonesia, rose 2.8 percent to C$23.83. Enbridge Inc. (ENB), the country’s largest pipeline company, climbed 1.9 percent to C$59.96.

RIM sank 10 percent in Toronto Stock Exchange trading to C$56.19 after earlier today tumbling as much as 11 percent, the most in nine months. The company forecast first-quarter earnings of $1.47 a share to $1.55 a share, excluding certain items. Analysts had estimated the company would earn $1.66 a share.

‘Just a Taste’

“Time is not on RIM’s side,” Brian Modoff, an analyst at Deutsche Bank, said in a note to clients. “We think this quarter was just a taste of what lies in store for the company.”

Precious-metals producers gained after European leaders cut the startup capital for its emergency-aid fund, heightening concerns about the continent’s ability to quell its debt crisis.

Goldcorp Inc. (G), the world’s second-largest gold producer, advanced 1.1 percent to C$48.19. OceanaGold Corp. (OGC), which mines in New Zealand, surged 6.6 percent to C$2.75. Silver reseller Silver Wheaton Corp. (SLW) rose 0.9 percent to C$42.81.

Directory publisher Yellow Media Inc. (YLO) increased 4.7 percent to C$5.54 after agreeing to sell a unit to Apax Partners for C$745 million. The shares soared as much as 6.8 percent, the most intraday in 13 months, earlier today.

Imax Corp. (IMAX), the maker of giant-screen movie-projection systems, climbed 6.4 percent to C$31.09 after Aravinda Galappatthige, an analyst at Canaccord Financial Inc., raised his rating on the shares to “buy” from “hold.” Imax soared 12 percent to a 10-year high yesterday after announcing plans to open 75 new theaters in China.

To contact the reporter on this story; Matt Walcoff in Toronto at mwalcoff1@bloomberg.net.

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

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.