Canadian Stocks Rise as RIM Soars on Analyst Outlook
Canadian stocks rose for a fifth day as Research In Motion Ltd. (RIM) gained the most in more than three years and better-than-expected Chinese manufacturing data indicated the world’s second-largest economy is rebounding.
RIM surged 18 percent, the biggest gain since April 2009, after an analyst with National Bank Financial raised his estimates for BlackBerry 10 sales next year. Colossus Minerals Inc. (CSI) climbed 3.8 percent as gold rose. Royal Bank (RY) of Canada and Toronto-Dominion Bank (TD) advanced. U.S. markets were closed today for the Thanksgiving holiday.
The Standard & Poor’s/TSX Composite Index (SPTSX) rose 53.04 points, or 0.4 percent, to 12,153.10 in Toronto. The streak of gains is the longest in three weeks. The benchmark Canadian equity gage is up 1.7 percent this year.
“The Chinese manufacturing data came in better than expected,” David Baskin, president of Toronto-based Baskin Financial Services Inc., said in a phone interview. His firm manages C$440 million in assets. “So much of the world natural resource trade goes to support Chinese growth so that’s the data people are looking for.”
Technology stocks paced gains on the benchmark, rising 3.8 percent. Trading volume was 58 percent lower than the 30-day average. The Canadian market sees little trading when U.S. markets are closed, Baskin said.
RIM soared 18 percent to C$12.03 after Kris Thompson, analyst with National Bank Financial, said the BlackBerry 10 line of smartphones will sell better than expected. The new phones, scheduled to go on sale in February, should post shipments of about 35.5 million units next fiscal year, up from a previous estimate of 31.6 million.
China’s purchasing managers’ index signaled the first expansion in the country in 13 months with a preliminary reading of 50.4, compared with a final level of 49.5 in October, according to HSBC Holdings Plc and Markit Economics. A reading above 50 indicates growth. Manufacturing gains bolster prospects for a sustained pickup in economic growth that slowed last quarter to the weakest pace in more than three years.
Teck Resources Ltd. (TCK/B), Canada’s largest diversified mining company, increased 2.6 percent to C$32.59.
Colossus Minerals advanced 3.8 percent to C$4.36 as gold gained for a second day. Barrick Gold Corp. (ABX) rose 0.4 percent to C$34.75. Gold for December delivery rose 0.1 percent to $1,729.50 in electronic trading in New York.
Royal Bank, the nation’s largest lender, rose 0.4 percent to C$57.81 and TD Bank gained 0.4 percent to C$80.99. Canada’s major banks begin reporting fourth-quarter earnings next week, with Royal first in line on Nov. 29.
To contact the editor responsible for this story: David Scanlan at firstname.lastname@example.org
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.