Canada Stocks Rise After 3-Day Slump as Commodities Shares Gain

Canadian stocks rose the most in two weeks, following the biggest three-day slide since June, as commodities producers rallied and global equities rebounded.

Thompson Creek Metals Co. and China Gold International Resources Corp. added at least 4.9 percent to pace gains among miners. BlackBerry Ltd. jumped 3.1 percent after releasing an updated version the operating system for its handsets. First Quantum Minerals Ltd. climbed 2.6 percent after boosting the production target for its Cobre Panama copper mine. Air Canada (AC/B) plunged 12 percent after Bank of America Corp. lowered its rating on the stock.

The Standard & Poor’s/TSX Composite Index (SPTSX) increased 105.37 points, or 0.8 percent, to 13,687.66 at 4 p.m. in Toronto. The gauge closed at a three-week low yesterday after falling 2.9 percent since Jan. 22. Trading in S&P/TSX stocks was in line with than the 30-day average at the close.

“This is a little bit of a relief rally on the back of what has been a pretty ugly three days for North America,” Brian Huen, a fund manager with Red Sky Capital Management Ltd., which oversees C$225 million ($202 million), said by phone from Toronto. “I think all eyes will be on the Fed tomorrow to make sure that nothing strange is going to happen.”

U.S. stocks advanced on corporate earnings from Ford Motor Co. to Pfizer Inc. and data showing consumer confidence rose more than forecast this month. European equities climbed after three days of losses and the MSCI Emerging Markets Index advanced 0.3 percent, after closing yesterday at the lowest level since August.

Fed Watch

The U.S. Federal Reserve began a two-day policy meeting to discuss further cuts to its monthly bond buying that has helped propel global equities higher.

All 10 main industries in the S&P/TSX advanced at least 0.1 percent today, with raw-materials producers adding 1.9 percent. Thompson Creek jumped 6.3 percent to C$3.03 and China Gold rose 4.9 percent to C$3.22.

Energy stocks added 0.7 percent as crude advanced for the first time in three days. Canadian Natural Resources Ltd. jumped 2.6 percent to C$36.30, the highest level since March 2012.

BlackBerry climbed 3.1 percent to C$11.18, halting a three-day slide that had reduced the share price by 9.4 percent. The smartphone maker announced a new software update for its BlackBerry 10 devices.

First Quantum rose 2.6 percent to C$20.36. The mining company raised its estimate of the cost of building the copper mine to $6.43 billion while boosting the production target.

Copper Output

The company forecast annual production of 320,000 metric tons of copper at the mine starting in the first quarter of 2018. The mine’s previous owner had planned to spend about $6.2 billion to produce 266,000 tons annually from 2016.

Air Canada slumped 12 percent, the most since April, to C$7.63. The stock has plunged 21 percent during a four-day losing streak. It was the best performer on the S&P/TSX in 2013, soaring 323 percent.

Bank of America analyst Glenn Engel lowered his rating to underperform, citing a “sharp” depreciation in the Canadian dollar. The loonie fell against the dollar to its lowest level since July 2009.

Engel also cut his recommendation on WestJet Airlines Ltd. The regional carrier’s stock sank 4.1 percent to C$24.83, the lowest level since October.

To contact the reporter on this story: Callie Bost in New York at cbost2@bloomberg.net

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

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