Canadian stocks rose for the first time in seven days, ending the longest losing streak in a year, as advances among energy and gold producers offset declines in industrial and health-care stocks.
Onex Corp. (OCX) gained 1.3 percent after one of its holdings paid it $295 million. E-L Financial Corp. (ELF) surged 9.5 percent after agreeing to sell a unit to Travelers Cos. for $1.1 billion. TransCanada Corp. climbed 2.4 percent after Canada’s natural resources minister said he is in favor of cross-country pipelines.
The Standard & Poor’s/TSX Composite Index (SPTSX) added 9.37 points, or 0.1 percent, to 12,382.67 at 4 p.m. in Toronto, after falling as much as 0.4 percent earlier. The index lost 2.9 percent over the previous six sessions.
“A lot of the stocks that were getting pounded over the last week or so seem to be coming back,” said David Cockfield, fund manager with Northland Wealth Management in Toronto. The firm manages C$225 million ($221 million).
Six of 10 industries in the S&P/TSX rose as investors weighed economic data from China and Canadian housing numbers. Trading volume was 22 percent lower than the 30-day average.
TransCanada added 2.4 percent to C$46.83 to pace gains among energy stocks, which rose 0.5 percent as a group.
Joe Oliver, Canada’s natural resources minister, said in Toronto today a pipeline transporting crude oil from Alberta to the eastern provinces is crucial to economic prosperity.
Onex, Canada’s largest publicly listed buyout firm, advanced 1.3 percent to C$46.95. Carestream Health Inc., which Onex acquired in 2007, will make the payment to the company after raising $2.4 billion of debt to fund $725 million in distributions to shareholders.
Bank of Montreal added 0.9 percent to C$60.63 as Canadian housing starts rose at their fastest pace in more than a year in May on a surge in condominium construction. The Canada Mortgage & Housing Corp. said work began on 200,178 units at a seasonally adjusted annual pace, up 13.8 percent from April.
E-L Financial, based in Toronto, jumped 9.5 percent to C$647.99 after agreeing to sell its Dominion of Canada General Insurance Co. to New York-based Travelers. The deal is expected to close by the end of the year.
Premier Gold Mines Ltd. rallied 7.5 percent to C$2.44 and Kinross Gold Corp. added 1.1 percent to C$6.44 as the price of gold rose 0.2 percent to settle at $1,386, erasing earlier losses of as much as 0.6 percent.
Taseko Mines Ltd. declined 4.7 percent to C$2.05 and Teck Resources Ltd. fell 2.4 percent to C$25.04 as the price of copper retreated to a five-week low.
The S&P GSCI Index, which tracks prices for a basket of the most commonly traded commodities in the world, fell 0.7 percent after data released over the weekend showed China’s industrial production rose a less-than-forecast 9.2 percent last month, while export gains were at a 10-month low and imports dropped. China, the world’s biggest consumer of industrial metals and energy, is Canada’s second-largest trading partner.
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