Canada Stocks Gain as Energy Shares Follow Rally in Oil
Canadian stocks rose as energy producers advanced along with oil and natural gas amid mounting speculation that China will introduce additional economic stimulus and better-than-forecast U.S. economic data.
Energy stocks rallied as oil traded above $80 dollars a barrel. Suncor Energy Inc. (SU) gained 1.8 percent while Encana Corp. (ECA), Canada’s biggest natural-gas producer, climbed 3.8 percent. Enbridge Inc. (ENB), the nation’s largest pipeline company, rose 0.5 percent after falling as much as 1.6 percent yesterday.
The Standard & Poor’s/TSX Composite Index advanced 76.52 points, or 0.7 percent, to 11,410.94 in Toronto. Eight out of 10 industries in the index advanced, with phone and health-care companies trailing. The index is down 0.9 percent in June, headed for a fourth straight month of declines.
“Any positive news out of China is going to have a positive effect on the whole commodity sector,” said David Cockfield of Toronto-based Northland Wealth Management, which manages C$200 million ($195 million), in a phone interview. “China has to move people in the country, into the cities, build infrastructure, and that takes a lot of the resources they import -- and energy.”
Canadian equities followed a rally in global stocks today as the China Securities Journal said the country may introduce “more proactive” policies to ensure stable growth in the world’s second-largest economy and data on U.S. home sales and durable-goods orders topped forecasts. European leaders prepared for a two-day summit starting tomorrow.
Encana, which is expanding into Michigan’s shale- exploration region, paced gains in energy, advancing 3.8 percent to C$19.75. Natural gas futures jumped to a five-month high on forecasts for hotter-than-normal weather that would boost fuel demand from power plants.
Suncor, the nation’s largest oil provider, rose 1.8 percent to C$28.24. Enbridge gained 0.5 percent to C$39.96. Spartan Oil Corp. (STO), a Calgary-based oil and gas exploration company with mines in Alberta and Saskatchewan, jumped 6.1 percent to C$3.32.
Pacific Rubiales Energy Corp. (PRE), a heavy crude producer with deposits in Colombia, rose 6.4 percent, the most since April 11, to C$22.44 as the company expects to receive an environmental permit that will increase its oil output. The license will allow greater water injection into wells at the onshore Rubiales field in eastern Colombia, increasing possible production to 200,000 barrels a day.
Potash Corp of Saskatchewan, the largest fertilizer producer in the world, moved up 1.7 percent to C$44.28, the highest level since April.
MacDonald Dettwiler & Associates Ltd. (MDA), which made the robotic arm for NASA’s defunct space shuttle, soared 28 percent, the biggest jump ever, to C$57.25. The company bought Loral Space & Communications Inc.’s commercial satellite unit to tap growing demand for mobile entertainment and smartphones.
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