Canadian Stocks Rise With Metals, Rise for a Second Week

Canadian stocks advanced, capping their second straight weekly gain, as metal and natural gas producers rose with prices for the commodities.

Agnico-Eagle Mines Ltd. (AEM), a gold producer that operates in Canada, Mexico and Finland, gained 9.6 percent after reporting profit that beat analyst estimates. Encana Corp. (ECA), the country’s biggest natural gas producer by volume, increased 3.8 percent. Petrominerales Ltd. (PMG), a Calgary-based oil company that operates in Latin America, plunged 18 percent after saying an exploration well was dry.

The Standard & Poor’s/TSX Composite Index (SPTSX) increased 91.90 points, or 0.8 percent, to 12,237.75 in Toronto, for a 0.7 percent weekly gain. Natural gas futures rose to a three-week high and copper and gold increased as the U.S. dollar weakened following government data showing the American economy grew at a slower-than-forecast rate of 2.2 percent, even with the biggest gain in consumer spending in more than a year.

“You’re finally seeing the private sector pick up the slack while government stimulus trails off,” Barry Schwartz, a money manager at Baskin Financial Services Inc. in Toronto, said in a telephone interview. The firm oversees about C$400 million ($400 million). “I think there’s a big possibility for a rebound.”

The benchmark gauge had its first weekly gain in almost two months in the five days ending April 20, snapping its longest losing streak since 2008. Canadian stocks have rallied this week on better-than-forecast corporate earnings and U.S. housing data that exceeded expectations.

Gold Producers Rise

Materials companies increased along with gold futures, which advanced for the second straight day as the dollar declined, increasing demand for the metal as an alternative investment.

Agnico-Eagle Mines gained 9.6 percent to C$38.66 after reporting earnings excluding some items of 59 cents a share, exceeding the average analyst estimate of 37 cents. Barrick Gold Corp. (ABX), the world’s largest producer of the metal, climbed 1.4 percent to C$39.88.

Energy stocks in the S&P/TSX increased as natural gas rallied on forecasts of colder-than-normal weather in the eastern and central U.S. that may boost demand for the heating fuel.

Encana increased 3.8 percent to C$20.18. Cenovus Energy Inc., the oil sands company spun off by Encana, advanced 3.4 percent to C$35.17. Canadian Natural Resources Ltd. (CNQ), the country’s third-largest energy company, rose 2.1 percent to C$33.31.

Dry Well

Petrominerales plunged 18 percent to C$14.09 after the company said it found no hydrocarbons at the La Colpa 2X well on Block 126 in Peru after completing testing.

Progressive Waste Solutions drove in index of Canadian industrials lower, dropping 4.5 percent to C$21.44. The nation’s biggest waste-management company reported earnings excluding some items of 20 cents per share, falling short of the average analyst estimate of 23 cents.

TMX Group Inc. (X), the Canadian exchange owner facing a C$3.73 billion takeover by a group of Canadian banks and pension funds, rose 4.6 percent to C$44.70 after an antitrust regulator said its “serious concerns” on the sale may be mitigated by proposed rules governing the bourse.

To contact the reporter on this story: Joseph Ciolli in New York at jciolli@bloomberg.net

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

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