Canada Stocks Rise to One-Week High on Global Manufacturing Data
Canadian stocks rose to a one-week high after reports showed an unexpected jump in U.S. manufacturing and smaller-than-forecast contraction in European factory data.
Magna International Inc. (MG), North America’s biggest auto- parts supplier, added 1.8 percent after agreeing to buy German automotive pumps producer Ixetic Verwaltungs GmbH. Canam Group Inc. (CAM), a maker of construction products, surged 12 percent as Guy Gottfried, founder of Rational Investment Group, recommended buying the stock at an investing conference.
The Standard & Poor’s/TSX Composite Index (SPTSX) rose 52.73 points, or 0.4 percent, to 12,370.19 in Toronto, the highest close since Sept. 21. The index has climbed 3.5 percent this year. Energy stocks contributed the most to the gain as nine of 10 industries in the Canadian equity benchmark advanced.
“We’re taking our direction from the much stronger-than- expected ISM numbers,” said Barry Schwartz, a fund manager with Baskin Financial Services Inc. in Toronto. The firm manages about C$450 million ($458.4 million). “Canada is in a pretty good spot right now. Our neighbors in the U.S. are doing just fine, thank you very much, and we do enough trade with them that we can ride on their coattails.”
The Institute for Supply Management’s index of U.S. manufacturing rose to 51.5 in September from 49.6 a month earlier, snapping three months of contraction. Economists in a Bloomberg survey projected a reading of 49.7 for September, according to the median of 76 forecasts. A reading above 50 indicates expansion.
Canam surged 12 percent to C$5.67, its biggest gain since October 2008 on trading volume more than six times higher than the three-month average. Gottfried said the stock was undervalued at the Value Investing Congress in New York.
Centerra Gold Inc. (CG) jumped 2 percent to C$12.56, the highest close since June. Gold futures for December delivery rose 0.5 percent to settle at $1,783.30 in New York after earlier touching $1,794.40, highest since Nov. 14.
Bankers Petroleum Ltd. (BNK) climbed 3.4 percent to C$3.05 and Crew Energy Inc. (CR) rose 5.5 percent to C$7.64. Paramount Resources Ltd. (POU) surged 6.7 percent to C$31.98. Crude for November delivery rose 0.3 percent to settle at $92.48 a barrel in New York.
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