Canada Stocks Rise as Material Shares Gain, Greece Bill Passes

Canadian stocks rose for a third day, led by raw-materials producers, as copper climbed after Greece’s parliament passed an austerity package and Canpotex Ltd. reached a potash-supply deal with Sinofert Holdings Ltd.

Teck Resources Ltd. (TCK/B), Canada’s largest base-metals and coal producer, increased 2.5 percent. Potash Corp. of Saskatchewan Inc. advanced 2.1 percent after Canpotex, which represents North American potash sellers overseas, agreed to a deal that boosts prices. Rubicon Minerals Corp. (RMX) slid 24 percent after releasing a preliminary economic assessment of its Phoenix Gold Project in Ontario.

The Standard & Poor’s/TSX Composite Index rose 83.96 points, or 0.6 percent, to 13,188.94.

“The risk-on trade is coming back,” said Greg Taylor, a money manager at Aurion Capital Management in Toronto, which oversees about C$5 billion ($5.2 billion). “The fear of the Greek vote not passing is behind us.”

The S&P/TSX dropped 7.2 percent this quarter through yesterday, which would be the biggest quarterly loss since 2008. World equities have declined on concern Greece won’t be able to pay its debts. S&P/TSX energy companies slumped 11 percent as crude oil sank 13 percent. The energy industry makes up 27 percent of Canadian stocks by market value, according to Bloomberg data.

The Greek Parliament approved a 78-billion-euro ($112 billion) package of budget cuts and asset sales today amid violent protests in Athens.

U.S. Housing

A U.S. index of pending home sales increased 8 percent in May from April, signaling the residential real estate market in Canada’s main trading partner may be rebounding. Economists had forecast a 3 percent increase, according to the median estimate in a Bloomberg News survey.

The U.S. dollar dropped against 15 of 16 other major currencies. The Canadian dollar rallied 1.1 percent after the country reported that inflation jumped to an eight-year high last month.

Gold advanced 0.7 percent and silver 3.3 percent in New York. Barrick Gold Corp. (ABX), the world’s largest producer of the metal, increased 1.5 percent to C$43.80. Kinross Gold Corp. (K), Canada’s third-biggest company in the industry, climbed 0.9 percent to C$15.03. Iamgold Corp. (IMG), which mines in West Africa, South America and Quebec, rallied 3 percent to C$18.38.

Rubicon Minerals sank 24 percent, the most in 10 years, to C$3.56. The company forecast mining costs higher than Bank of Montreal had forecast, Andrew Kaip, an analyst at BMO, wrote in a note to clients.

‘Most-Preferred’

Potash Corp. gained for a fifth day after Canpotex said its agreement with Sinofert, a Hong Kong-based fertilizer manufacturer, for the second half of the year boosts potash prices by $70 a metric ton. Also today, analysts at UBS AG named Potash Corp. one of nine “most-preferred” chemicals stocks, citing its “balanced exposure to potash, phosphate and nitrogen fertilizers.”

Shares of the Saskatoon, Saskatchewan-based company rose 2.1 percent to C$55.13.

Base-metals producers advanced as copper rallied the most in a month. Teck increased 2.5 percent to C$48.55. Ivanhoe Mines Ltd., which is building a copper and gold mine in Mongolia with Rio Tinto Group, climbed 5.6 percent to C$24.52. Capstone Mining Corp., a copper producer with operations in Yukon and Mexico, jumped 16 percent to C$3.44 for its first gain in six days. Mercator Minerals Ltd. (ML), which mines copper and molybdenum, surged 9.8 percent to C$2.70.

Fifty of 67 S&P/TSX energy companies gained today as crude futures advanced after the U.S. reported a bigger drop in inventories than all 12 analysts in a Bloomberg survey had forecast.

Energy Shares

Canadian Natural Resources Ltd. (CNQ), Canada’s second-largest energy company by market value, rose 1.4 percent to C$39.99. Cenovus Energy Inc. (CVE), the country’s fifth-biggest energy company, increased 2.4 percent to C$35.44. Canadian Oil Sands Ltd., the largest owner of the Syncrude project, climbed 3 percent to C$27.76.

TMX Group Ltd., the owner of the Toronto Stock Exchange, rallied 1.5 percent to C$44.20 after London Stock Exchange Group Plc withdrew its C$3.29 billion bid for the company. In a statement, the companies said they were unlikely to obtain enough shareholder votes for approval at a meeting scheduled for tomorrow.

Maple Group Acquisition Corp., which has offered C$3.73 billion in cash and shares for TMX, said it will continue to pursue regulatory approvals for its bid.

Directory publisher Yellow Media Inc. (YLO) gained for the first time in seven days, rising a record 18 percent to C$2.69. The shares had plunged 52 percent to a record low from May 17, the day San Francisco banned the unsolicited distribution of phone books, to yesterday.

Exfo Inc. (EXF), which makes equipment for the telecommunications industry, tumbled 17 percent to C$7.22 after forecasting fourth- quarter profit below analysts’ estimates. Shares of the Quebec City-based company have fallen 44 percent from a post-2002 high on March 8.

To contact the reporter on this story: Matt Walcoff at Mwalcoff1@bloomberg.net

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

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