Canadian Stocks Rise as Banks Erase Monthly Losses, Gold Gains

Canadian stocks rose, led by financial and precious-metals stocks, as companies including Target Corp. and A.P. Moeller-Maersk A/S reported earnings that beat their average analyst estimates and gold gained.

Bank of Nova Scotia, Canada’s third-largest lender by assets, advanced 1.2 percent as bank stocks erased their losses for the month. Kinross Gold Corp. (K), the country’s third-biggest gold producer, increased 2.9 percent as the metal climbed for a third day. Valeant Pharmaceuticals International Inc. (VRX), Canada’s largest drugmaker, surged 5.2 percent.

The Standard & Poor’s/TSX Composite Index (SPTSX) gained 48.9 points, or 0.4 percent, to 12,579.61.

“The Canadian market has been pretty resilient to a lot of the fears and concerns out there, especially the problems in Europe and debt-ceiling issue in the U.S.,” Gerry Brockelsby, a money manager at Marquest Asset Management Inc. in Toronto, said in a telephone interview. The firm oversees C$250 million ($255 million). “It’s not a direct hit on our banking system.”

The S&P/TSX declined 3.2 percent this month through yesterday, the least among major developed-market stock benchmarks. Besides the rebound in bank shares, gold stocks surged on concern over U.S. and European sovereign debt.

The eight S&P/TSX banks advanced. Scotiabank rallied 1.2 percent to C$54.01. Bank of Montreal (BMO), the country’s fourth-largest lender by assets, increased 1.2 percent to C$60.24. Manulife Financial Corp. (MFC), North America’s fourth-biggest insurer, rose 1.6 percent to C$13.92.

Wholesale Inflation

Precious-metals producers climbed as the U.S. Dollar Index slipped to an August low and the U.S. reported higher wholesale inflation for July than most economists had forecast.

Kinross gained 2.9 percent to C$16.45. Goldcorp Inc. (G), the world’s second-largest gold producer by market value, advanced 1.1 percent to C$50.30.

Lake Shore Gold Corp. (LSG), which mines in Ontario, soared 6 percent to C$2.30 to extend its two-day surge to 18 percent, the most since June 2009. The company reported a new discovery yesterday. Claude Resources Inc. (CRJ), the owner of the Seabee mine in Saskatchewan, jumped 18 percent, the most since October 2009, to C$1.94 after disclosing exploration results.

Valeant rallied 5.2 percent to C$41.24. The shares have rebounded 8.5 percent since Aug. 5, the day after the company reported second-quarter net income that trailed analysts’ forecasts, as at least seven insiders bought shares.

Progressive Waste Solutions Ltd. (BIN), the waste-management company formerly known as IESI-BFC Ltd., surged 6.8 percent, the most since April 2010, to C$21.11 after saying it will buy back shares. The company based in Vaughan, Ontario, will buy up to 4 million shares in the year beginning Aug. 19.

Neo Material Technologies Inc., which makes rare-earths and zirconium products, increased 6.6 percent to C$9.55. The shares have climbed 34 percent since Aug. 8 after closing at the lowest level relative to earnings since March 2009.

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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