Canadian stocks rebounded from a five-month low as crude and gold prices climbed and U.S. jobless claims held steady, signaling the labor market is stabilizing.
Kinross Gold Corp. and Alamos Gold Inc. advanced at least 4 percent, while Bankers Petroleum Inc. and Legacy Oil + Gas Inc. jumped more than 6 percent. Toronto-Dominion Bank and Royal Bank of Canada, the nation’s largest lenders, dropped more than 0.7 percent. TransCanada Corp. (TRP) gained 0.8 percent after the U.S. State Department said it will post all public comments on its review of the proposed Keystone XL pipeline, reversing an earlier decision.
The Standard & Poor’s/TSX Composite Index (SPTSX) rose 77.29 points, or 0.7 percent, to 12,024.58 at 11:26 a.m. in Toronto, erasing earlier losses of as much as 0.2 percent. The benchmark equity gauge has fallen 3.2 percent this year.
“There’s a lot of uncertainty right now given some of the news in the U.S. and the correction we’ve had in Canada,” Brian Huen, managing partner with Red Sky Capital Management Ltd., said on the phone from Toronto. He helps manage C$55 million ($54 million). “Financials are a bit weak due to concerns about the Canadian economy. Oil and gas stocks have struggled to move higher despite rising oil prices and materials have been decimated by the sell-off in gold and base metals. The market is recalibrating for the next move.”
Applications for U.S. jobless insurance payments increased by 4,000 to 352,000 in the week ended April 13, in line with the median forecast of economists surveyed by Bloomberg.
Kinross added 4 percent to C$5.34 and Alamos Gold surged 7.1 percent to C$11.22 as gold for June delivery rose 0.3 percent to $1,387.10 an ounce in New York. Gold retail sales tripled across China from April 15 to April 16, the China Gold Association said. Gold prices have slumped 17 percent this year.
TD Bank lost 1.2 percent to C$79.84 and Royal Bank decreased 0.7 percent to C$60.96 as banks were the biggest drag on the S&P/TSX, falling 0.2 percent as a group as seven of 10 industries retreated. Trading volume was 28 percent higher than the 30-day average at this time of the day.
The Bank of Canada yesterday cut the nation’s growth outlook for 2013 to 1.5 percent from 2 percent and said “economic slack” will persist for more than two years.
TransCanada, which is attempting to build the Keystone XL pipeline in the U.S., rose 0.8 percent to C$48.71 after the U.S. State Department said it will release comments on its review of the proposed project.
The department will also provide additional chances for comment during the National Interest Determination period. The pipeline would help bring Alberta’s oil sands to refineries on the U.S. Gulf Coast.
Rogers Communications Inc. pared declines after losing as much as 1.8 percent to C$50.48 after buying Blackiron Data, a cloud-based computer data company, for C$200 million in cash. The company operates a data center and cloud computing services for about 4,000 customers in Canada, Rogers said in a statement.
Ivanplats (IVP) Ltd. jumped 7.1 percent to C$3.17 after the company said planned development of its Kamoa copper project in the Democratic Republic of Congo will not be affected by a ban on exports of cobalt and copper concentrates announced by the country yesterday.
Ivanplats, based in Vancouver, said its development plans include a smelter that will produce upgraded product, meeting the government’s demands that mining companies add value to the commodities before shipping them.
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