Canadian Stocks Climb After U.S. Reports Retail-Sales Increase

Canadian stocks rose, completing their biggest weekly gain since July 2010, as medium-sized energy companies advanced after the U.S. reported an increase in retail sales.

Baytex Energy Corp., a western Canadian oil and gas producer, climbed 5.2 percent. Goldcorp Inc. (G), the world’s second-largest gold producer by market value, fell 1.9 percent as the metal dropped a second day. First Quantum Minerals Ltd. (FM), Canada’s second-biggest publicly traded copper producer, rose 5.1 percent after JPMorgan Chase & Co. recommended the stock.

The Standard & Poor’s/TSX Composite Index rose 2.4 points, or less than 0.1 percent, to 12,542.20, extending its weekly rally to 3.1 percent. The index rebounded after dropping to an 11-month low on Aug. 8 as gold advanced to a record and the U.S. reported a decline in initial jobless claims.

“The panic seems to be going out of the market,” David Cockfield, a managing director at Northland Wealth Management in Toronto, said in a telephone interview. The firm oversees about C$225 million ($227 million). “The debt ceiling thing really shook a lot of people, but they’re basically saying that’s a problem that’s behind us, and those employment numbers didn’t look too bad.”

The S&P/TSX has lost less than all other developed-market equity benchmarks this month, slipping 3.1 percent through yesterday. Precious-metals stocks make up 14 percent of Canadian equities by market value, according to Bloomberg data.

Riskier Assets

Medium-sized energy stocks gained after companies including Celtic Exploration Ltd. (CLT) and Bonterra Energy Corp. (BNE) reported quarterly financial results that surpassed some analysts’ estimates.

Recent economic data have encouraged investors to seek riskier assets such as shares of smaller companies, Robert McWhirter, a money manager at Selective Asset Management Inc. in Toronto, said in a telephone interview.

“The big debate revolved around, ‘Are we going into a double-dip recession?’” said McWhirter, who oversees C$140 million. “You’ve seen the U.S. consumer having at least spent a little bit of money.”

Baytex increased 5.2 percent, the most in two years, to C$50.24. Celtic advanced 8.2 percent to C$22.91 as at least four analysts raised their price estimates on the shares. Bonterra rallied 5.4 percent to C$52.71 after Ken F. Lin, an analyst at Paradigm Capital Inc., raised his rating on the shares to “buy” from “hold” after the company’s cash flow topped his estimate.

Gold futures fell 0.5 percent in New York after the U.S. said retail sales increased the most in four months in July.

Goldcorp dropped 1.9 percent to C$49.48. Barrick Gold Corp. (ABX), the world’s largest producer of the metal, slipped 1.3 percent to C$49.12. China Gold International Resources Corp. slumped 9.9 percent to C$3.92. Romarco Minerals Inc. (R), which is developing a mine in South Carolina, sank 11 percent to C$1.45, the lowest since February 2010.

First Quantum jumped 5.1 percent to C$23.96 after Ian Henderson, a money manager at JPMorgan, said copper may advance to a record due to supply disruptions and demand from emerging markets.

Valeant Pharmaceuticals International Inc. (VRX), Canada’s largest drugmaker, climbed 4.1 percent to C$39.97 after tumbling 27 percent this month through yesterday. In a note to clients dated Aug. 10, Annabel Samimy, an analyst at Stifel Financial Corp., said the shares “fell victim to severe dislocation in the market” and that the company will successfully integrate acquisitions.

Directory publisher Yellow Media Inc. (YLO) increased a record 19 percent to 94 Canadian cents. The shares plunged 87 percent this year through yesterday on concern it will be unable to maintain profitability as fewer people use printed phone books.

To contact the reporters on this story: Matt Walcoff in Toronto at mwalcoff1@bloomberg.net; Victoria Taylor in New York at vtaylor6@bloomberg.net

To contact the editor responsible for this story: Michael P. Regan at mregan12@bloomberg.net

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