Canadian stocks rose a fifth day as commodities prices advanced after orders for U.S. durable goods climbed more than forecast in November, signaling business investment in the economy is rebounding.
Centerra Gold Corp. (CG) added 7.8 percent after it agreed to a non-binding deal with the Kyrgyz government over ownership of the Kumtor gold mining project. Sherritt International Corp. increased 7.4 percent after selling its its coal interests for C$946 million ($891 million). Alacer Gold Corp. and Detour Gold Corp. rose at least 1.4 percent as the price of the metal advanced.
The Standard & Poor’s/TSX Composite Index (SPTSX) rose 33.91 points, or 0.3 percent, to 13,481.61 at 9:57 a.m. in Toronto, headed for the longest winning streak since October. The benchmark equity gauge has risen 8.4 percent this year, the fourth-worst performer among developed markets ahead of Austria, Hong Kong and Singapore.
“Businesses may be starting to spend more freely,” said Peter Buchanan, economist at CIBC World Markets Inc. in a note to clients. “Combined with the signs of consumer resilience from yesterday’s spending numbers, that could bode well for the economy’s performance in 2014.”
Bookings for goods meant to last at least three years rose 3.5 percent after a 0.7 percent drop the prior month, a Commerce Department report showed today in Washington. The median estimate of 75 economists surveyed by Bloomberg called for a 2 percent advance. Data yesterday showed consumer spending rose in November by the most in five months.
To contact the reporter on this story: Eric Lam in Toronto at firstname.lastname@example.org
To contact the editor responsible for this story: Lynn Thomasson at email@example.com