Canadian stocks rose, driving the Standard & Poor’s/TSX Composite Index toward the longest winning streak since January, as energy shares increased with oil prices after a stronger-than-forecast U.S. manufacturing report.
Cameco Corp. (CCO) the world’s largest uranium producer, gained 4.9 percent after reporting first-quarter profit that topped analysts’ estimates as sales of the nuclear-reactor fuel rose. Suncor Energy Inc. (SU) increased 1.5 percent. Encana Corp. (ECA), the country’s biggest natural gas producer by volume, increased 1.7 percent, as gas prices rose for a third day.
The S&P/TSX (SPTSX) gained 67.96 points, or 0.6 percent, to 12,360.65 at 11:52 a.m. in Toronto, rallying for a fifth- straight day.
“Oil is particularly strong today,” David Cockfield, a managing director at Northland Wealth Management in Toronto, said in a telephone interview. The firm oversees about C$200 million ($200 million). “Things have quieted down in Europe to a degree. Investors are back in picking away at individual situations.”
The benchmark gauge had its second straight weekly gain in the period ending April 27, marking the first time since February that the index increased in two consecutive weeks. Canadian stocks rose on better-than-forecast corporate earnings and U.S. housing data that exceeded expectations. Energy and raw material stocks account for 44 percent of Canadian stocks by value.
Energy companies increased as oil climbed to a one-month high after U.S. manufacturing increased at the fastest pace in 10 months, signaling that economic growth will accelerate in the world’s biggest crude-consuming country. Natural gas climbed on forecasts of below-normal temperatures that may increase heating fuel demand.
Suncor rose 1.5 percent to C$33.13. Encana increased 1.7 percent to C$21.05. Oil-sands company Cenovus Energy Inc. (CVE) gained 1.6 percent to C$36.42.
Materials stocks in the S&P/TSX increased as copper prices rose after reports on U.S. manufacturing and automobile sales last month brightened prospects for demand. Teck Resources Ltd. (TCK/B), the country’s biggest base metals producer, climbed 1.4 percent to C$37.39. Lundin Mining Corp. rallied 4.4 percent to C$5.01.
Cameco surged 4.9 percent to C$22.93 after saying in a statement today that net income increased to C$132 million, or 33 cents a share, from C$91 million, or 23 cents, a year earlier. Excluding a loss from contracts used to lock-in commodity prices, per-share profit was 31 cents, topping the 25- cent average of 10 estimates compiled by Bloomberg.
TMX Group Inc. (X), the exchange owner facing a C$3.73 billion takeover by a group of Canadian banks and pension funds, rose 2.4 percent to C$46.20 after the offer was extended pending regulatory approval. The shares climbed to C$46.44 intraday, the highest price since May 2008, approaching the C$50-a-share bid by Maple Group Acquisition Corp.
To contact the editor responsible for this story: Nick Baker at firstname.lastname@example.org