Canadian Stocks Rise as Weaker U.S. Dollar Boosts Oil, Metals

Canadian stocks rose, extending a weekly gain, as a weaker U.S. dollar and speculation the global economy is improving boosted the prices of metals and crude oil.

Teck Resources Ltd. (TCK/B), Canada’s largest base-metals and coal producer, advanced 3 percent after Group of Eight leaders said the recovery is gaining momentum. Silver Wheaton Corp. (SLW), Canada’s fourth-largest precious-metals company by market value, increased 1.5 percent as the U.S. dollar slipped after U.S. consumer spending lagged behind most economists’ forecasts. Royal Bank of Canada (RY), the country’s biggest bank, dropped 2.5 percent after its second-quarter profit trailed the average analyst estimate by 8.4 percent, excluding certain items.

The Standard & Poor’s/TSX Composite Index rose 59.18 points, or 0.4 percent, to 13,835.08 at 10:52 a.m. in Toronto.

The stock benchmark gained 3 percent from May 13 to yesterday and is set for its biggest two-week advance since Feb. 4. Raw-materials and energy companies climbed as analysts at banks including Deutsche Bank AG, Goldman Sachs Group Inc. and JPMorgan Chase & Co. said commodity prices are likely to rebound. Those industries make up 48 percent of Canadian stocks by market value.

“The global recovery is gaining strength and is becoming more self-sustained,” G-8 leaders said in a draft statement from Deauville, France, where they are meeting.

Oil, Natural Gas

Crude oil advanced, and natural gas surged as much as 4 percent as meteorologists forecast above-normal temperatures for the eastern and central U.S.

Suncor Energy Inc. (SU), Canada’s largest oil and gas producer, increased 0.9 percent to C$41.48. Cenovus Energy Inc. (CVE), the country’s fifth-biggest energy company, climbed 2 percent to C$36.18 for a fifth-straight gain. Bonavista Energy Corp., which produces oil and gas in western Canada, rallied 2.3 percent to C$29.19.

Base-metal and coal producers rose as copper futures headed for a third-straight weekly gain.

Teck advanced 3 percent to C$50.60. Sherritt International Corp. (S), which mines coal, nickel and cobalt, surged 4.1 percent to C$7.05. Ivanhoe Mines Ltd., which is developing a copper and gold mine in Mongolia with Rio Tinto Group, increased 3.9 percent to C$25.10.

Precious-metals companies climbed as the U.S. dollar retreated against all 16 other major currencies.

Kinross, Barrick

Kinross Gold Corp. (K), Canada’s third-largest gold producer, rose 2.8 percent to C$15.44 for a ninth-straight gain, the longest streak since at least 1993. Barrick Gold Corp. (ABX), the world’s biggest producer of the metal, gained 1 percent to C$46.68. Silver Wheaton advanced 1.5 percent to C$35.83.

Royal Bank, Canada’s largest company by market value, fell 2.8 percent to C$57.50 after saying earnings from investment banking declined. Yesterday, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce reported profit that lagged behind their average analyst estimates.

Earlier today, Royal Bank slumped as much as 3 percent in Toronto Stock Exchange trading, the most in five months.

BlackBerry maker Research In Motion Ltd. (RIM) dropped 0.8 percent to C$42.34 after Peter Misek, an analyst at Jefferies Group Inc., said product delays, lower sales or margins and reduced support from carrier partners may hurt the company in the next six to 12 months. Misek made the remarks in a note to clients.

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

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