Canadian stocks rose, paring a weekly decline, as commodity producers rallied on speculation the European Union will agree on loans to the International Monetary Fund to help quell the region’s debt crisis.
Barrick Gold Corp. (ABX), the world’s largest gold producer, gained 1.9 percent as the U.S. Dollar Index dropped for a second day. Canadian Natural Resources Ltd. (CNQ), the nation’s second- biggest energy producer by market value, increased 2.6 percent as oil and gas producers climbed. BlackBerry maker Research In Motion Ltd. plunged 12 percent after forecasting a decline in profit for the current quarter.
The Standard & Poor’s/TSX Composite Index rose 130.96 points, or 1.1 percent, to 11,635.38, reducing its weekly retreat to 3.3 percent.
“If a deal were to come, and the financial market embraced it, the market will zoom up,” Sebastian van Berkom, a money manager at Van Berkom and Associates in Montreal, said in a telephone interview. The firm oversees about C$1.6 billion ($1.5 billion). “The sentiment is going from positive to negative to positive to negative until finally it’s done.”
The S&P/TSX’s slump this week through yesterday was the biggest four-day drop since Oct. 3, as raw-materials producers declined on concern growth is slowing in Europe and China. Canada’s stock benchmark gauge has tumbled 13 percent this year.
Luxembourg’s Jean-Claude Juncker, who leads a group of euro-area finance ministers, told reporters he thinks the EU will meet an informal Dec. 19 deadline set at a summit last week for agreement on the IMF loan. An hour later the Bundesbank said it won’t rush to a decision.
The government of Italian Prime Minister Mario Monti won a confidence vote today on a 30 billion-euro ($39 billion) emergency budget plan.
The U.S. dollar fell against the euro and most other major currencies. Gold futures ended a four-day streak of declines, and the S&P/TSX Gold Index rebounded from the lowest close since August 2010.
Barrick advanced 1.9 percent to C$46.65. Kinross Gold Corp. (K), Canada’s third-largest gold producer, gained 3.2 percent to C$12.49. Avion Gold Corp. (AVR), jumped 19 percent, the most since January 2009, to C$1.65 after seven straight days of losses
Jaguar Mining Inc. (JAG), which produces gold in Brazil, rallied 8.8 percent to C$6.30 after saying it’s likely to have an update on potential takeover offers in early 2012. Shandong Gold Group Co., based in Jinan, China, bid $785 million for Jaguar, two people familiar with the deal said last month.
Alexco Resource Corp. (AXR), which mines silver in Yukon, soared 11 percent, the most since April, to C$7.69. The company will be added to the Market Vectors Junior Gold Miners Index, which is used for a $2 billion exchange-traded fund (GDXJ) of the same name, on Dec. 19.
Producers of base metals climbed as copper futures rose for the first time this week. First Quantum Minerals Ltd. (FM), Canada’s second-largest publicly traded copper producer, gained 2.2 percent to C$18.58. Teck Resources Ltd. (TCK/B), the country’s biggest company in the industry, advanced 2.4 percent to C$35.18. Ivanhoe Mines Ltd., Rio Tinto Group’s partner in the Oyu Tolgoi project in Mongolia, soared 4 percent to C$17.37.
Energy companies in the S&P/TSX climbed for the first time this week. Canadian Natural rose 2.6 percent to C$36.10. Cenovus Energy Inc., the country’s fifth-largest energy company, gained 2.7 percent to C$31.85. Athabasca Oil Sands Corp. (ATH), PetroChina Co.’s partner in oil-sands development, increased 5.7 percent to C$12.25.
RIM sank 12 percent to C$13.97, the lowest since December 2003, after forecasting (RIM) fourth-quarter earnings below the estimates of analysts in a Bloomberg survey. The company also said a new generation of BlackBerry models won’t come out until the “latter part” of 2012.
RIM, once Canada’s largest company by market value, fell below the country’s biggest coffee and doughnut chain, Tim Hortons Inc. The BlackBerry makers market capitalization has plunged to C$7.3 billion from a record C$84.5 billion in 2008. Tim Hortons is valued at C$7.8 billion after rallying 19 percent this year.
All eight S&P/TSX banks and the three largest insurers each rose. Royal Bank of Canada (RY), the country’s biggest lender by assets, gained 1.1 percent to C$48.82. Great-West Lifeco Inc. (GWO), Canada’s second-largest insurer, advanced 3 percent to C$19.83. National Bank of Canada (NA), the country’s sixth-largest lender, climbed 2.5 percent to C$71.31, extending its four-day surge to 6.1 percent.
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