Canada Stocks Rise Most in Month on Earnings, Trade Data

Canadian stocks rose the most in a month as exports rebounded in Germany and China, gold rallied and earnings from companies including Canadian Tire (CTC/A) Corp. and Tim Hortons Inc. topped analyst estimates.

Canadian Tire soared to a record high and Tim Hortons (THI), the nation’s largest coffee and doughnut chain, gained 0.7 percent. Turquoise Hill Resources Ltd. jumped 12 percent after parent Rio Tinto Plc loaned $600 million to the company to fund development of its copper and gold mine in Mongolia. Air Canada rallied for a second day after reporting better-than-forecast profits.

The Standard & Poor’s/TSX Composite Index (SPTSX) rose 140.19 points, or 1.1 percent, to 12,552.92 at 4 p.m. in Toronto, the biggest increase since July 11. The index has gained 1 percent this year.

“The reasons for the past few down days have been pretty tenuous,” said David Cockfield, a fund manager with Northland Wealth Management in Toronto. The firm manages about C$200 million ($193 million). “The numbers out there aren’t bad at all. This is a long, drawn out recovery but we’re still on the recovery path and I don’t see any reason why this market won’t continue to chug along. I’d like to see the Canadian market shake itself out of its doldrums.”

Chinese shipments overseas climbed 5.1 percent in July from a year earlier after sliding 3.1 percent in June, the General Administration of Customs in Beijing said. China is Canada’s second-largest trading partner. German exports increased 0.6 percent in June from May.

Raw-materials producers climbed the most in the S&P/TSX, gaining 5.9 percent, the most since 2011, as eight of 10 industries advanced. Trading volume was 62 percent higher compared with the 30-day average at this time of the day.

Turquoise Hill

Turquoise Hill jumped 12 percent to C$5.10. Rio Tinto agreed to provide the $600 million loan after Turquoise Hill repaid an earlier $225 million bridge loan, the company said in a statement. The latest loan will mature in December.

Iamgold Corp. surged 14 percent to C$5.13 after announcing an agreement yesterday with the government of Suriname to reduce power rates at its Rosebel mine and lower costs by as much as $50 an ounce.

Barrick Gold Corp. climbed 8.2 percent to C$17.58 and Yamana Gold Inc. advanced 7.7 percent to C$10.03 as the price of gold jumped 1.9 percent to $1,309.90 an ounce in New York, the biggest gain in two weeks.

Teck Resources Ltd. (TCK/B) jumped 7.7 percent to C$26.31 and First Quantum Resources Ltd. rallied 8.4 percent to C$17.12 after copper soared to an eight-week high as imports rose to the highest in 14 months in China.

Canadian Tire surged 7.1 percent to C$89.45, a record high. The retailer reported second-quarter earnings of C$1.91 a share, compared with analysts’ estimates for C$1.77 a share. Canadian Tire is seeking a partner for its C$4.4 billion credit-card portfolio.

Tim Hortons, the nation’s largest coffee-and-doughnut chain, rose 0.7 percent to C$59.90 after the company posted a 14 percent increase in net income. Tim Hortons also announced it will buy back as much as 10 percent of its shares.

Air Canada (AC/B), the nation’s largest airline, jumped 9.4 percent to C$2.90. The stock has gained 37 percent in the past two days, after reporting second-quarter profit that topped analysts’ estimates as fuel costs dropped.

To contact the reporter on this story: Eric Lam in Toronto at elam87@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net

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