Canadian stocks rose, completing a a weekly gain, as a weaker dollar boosted raw-material producers and companies including Morgan Stanley and Apple Inc. topped analysts’ profit estimates.
Barrick Gold Corp. (ABX), the world’s largest gold producer, advanced 1.5 percent as the metal settled above $1,500 an ounce for the first time. Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer by market value, climbed 1.2 percent after Mackie Research Capital Corp. raised its rating on the company. BlackBerry maker Research In Motion Ltd. (RIM) dropped 1.3 percent after Apple said iPhone unit sales more than doubled in the second quarter from a year earlier.
The Standard & Poor’s/TSX Composite Index rose 74.54 points, or 0.5 percent, to 13,972.02. For the week, the Canadian stock benchmark gained 1.3 percent.
“There is a continuing downward pressure on the U.S. dollar, and that is likely to continue,” said Michael Smedley, who helps manage about C$1 billion ($1.05 billion) as a money manager at Morgan Meighen & Associates Ltd. in Toronto. “The upward power on the commodity prices is related to the weakness in the U.S. dollar. You need more U.S. dollars all the time to buy these things.”
The S&P/TSX has advanced 21 percent in the past nine months as the U.S. Dollar Index fell 11 percent. Gold surged 26 percent to a record and silver soared 162 percent to the highest since 1980.
The Dollar Index, a gauge of the currency against a basket of six major peers, retreated 0.3 percent today. The dollar has fallen due in part to concern about the country’s budget deficit, speculation the U.S. Federal Reserve will not follow other central banks in raising interest rates soon and higher oil prices, Camilla Sutton, chief currency strategist at Bank of Nova Scotia (BNS), said in a note to clients.
Gold increased by $4.90 to settle at $1,503.80 in New York while silver rallied 3.6 percent.
Barrick climbed 1.5 percent to C$53.07. Goldcorp Inc. (G), the world’s second-largest producer of the metal by market value, rose 1.2 percent to a record close of C$53.07. Semafo Inc. (SMF), which mines gold in Africa, advanced 5.8 percent to C$8.72.
Copper climbed for a third day in New York. Teck Resources Ltd. (TCK/B), Canada’s largest base-metals and coal producer, increased 2.2 percent to C$53.83. Ivanhoe Mines Ltd., which is developing a copper and gold mine in Mongolia with Rio Tinto Group, rose 1.7 percent to C$25.46.
Potash Corp. rallied 1.2 percent to C$55.35 after John Chu, a Mackie analyst, boosted his rating on the shares to “buy” from “hold.” In a note to clients, Chu cited a recent decline in the shares’ price relative to forecast earnings.
Ninety-three of 115 S&P 500 companies and four of 10 S&P/TSX companies that have reported earnings since April 11 have beaten their average analyst estimate.
Canada’s six largest banks and three biggest insurers each advanced. Bank of Nova Scotia, Canada’s third-largest lender by assets, increased 0.9 percent to C$57.70. Toronto-Dominion Bank (TD), Canada’s No. 2 lender, climbed 1 percent to C$83.10. Manulife Financial Corp. (MFC), North America’s fourth-biggest insurer, rose 0.7 percent to C$16.80.
The S&P/TSX Energy Index gained for a third day after the U.S. reported a smaller increase in natural gas stockpiles than most analysts in a Bloomberg survey had forecast. Gas futures advanced 2.4 percent in New York.
Suncor Energy Inc. (SU), Canada’s largest oil and gas producer, increased 1.6 percent to C$43.19. Nexen Inc. (NXY), an oil and gas producer with operations on five continents, climbed 4.2 percent to C$23.13. Oilfield-services provider Trican Well Service Ltd. (TCW) rose 3.8 percent to C$22.89.
Second Wave Petroleum Inc. (SCS), which explores for oil and gas in western Canada, surged 29 percent, the most in 27 months, to C$3.15 after saying it has completed its first horizontal oil well at Beaverhill Lake in Alberta.
RIM dropped 1.3 percent to C$51.29 after Apple said it sold 18.7 million iPhones last quarter, surpassing the 16.3 million average of 13 analyst forecasts. RIM shares have plunged 31 percent since Feb. 19.
Celestica Inc. (CLS), which makes electronics for companies including RIM, rallied 4.9 percent to C$10.54 after reporting first-quarter earnings that topped the average of 13 analyst estimates.
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