Canada Stocks Snap Two-Day Drop as Oil, Copper Post Weekly Gain

Canadian stocks rose for the first time in three days as raw-materials producers rallied after crude and copper prices advanced to weekly gains.

Teck Resources Ltd. (TCK/B), Canada’s largest diversified mining company, added 1.9 percent as copper posted the biggest weekly advance in six months. Kinross Gold Corp. (K) jumped 4.7 percent after analysts at Goldman Sachs Group Inc. raised their rating for the stock. BlackBerry Ltd. slumped 6.6 percent for a fourth day of losses after reporting weaker-than-forecast revenue.

The Standard & Poor’s/TSX Composite Index (SPTSX) rose 81.88 points, or 0.6 percent, to 14,260.72 at 4 p.m. in Toronto. The equity benchmark fell 0.5 percent this week.

“It’s a pretty broad-based gain, oil and gas are rising and the materials are looking strong,” said Bruce Campbell, fund manager at StoneCastle Investment Management Inc. in Kelowna, British Columbia. The firm manages about C$100 million ($91 million). “Looking at the past week, the first four days have been risk-off and people were tentative. Now people are buying on the dips and jumping back in.”

Chinese Premier Li Keqiang said in a statement the country has policies in reserve to deal with any economic volatility this year and can’t ignore “difficulties and risks” from a slowdown in the economy. Gross domestic product is forecast to increase 7.4 percent this year, the lowest since 1990, according to the median estimate of 56 economists surveyed by Bloomberg.

Consumer Spending

American economic data is also improving, Campbell said. Consumer spending in the U.S. rose 0.3 percent in February, the most in three months, as income increased.

Silvercorp Metals Inc. gained 2.8 percent to C$2.20 and Fortuna Silver Mines Inc. increased 2.5 percent to C$4.10 as raw-materials stocks rallied 1.3 percent as a group. Seven of 10 industries in the S&P/TSX advanced on trading volume 7.1 percent lower compared with the 30-day average.

Silver for May delivery rose 0.4 percent to $19.79 an ounce in New York, snapping a nine-day slump.

Kinross Gold jumped 4.7 percent to C$4.67, snapping five days of losses. Andrew Quail, analyst at Goldman Sachs, raised his rating for the stock to neutral, the equivalent of a hold, from sell due to the company’s recent share price decline. The stock has 12 buys, 14 holds and one sell, according to data compiled by Bloomberg.

“We see greater downside potential elsewhere,” Quail said in a note to clients. Kinross had slumped 17 percent in the past five days.

Crew Energy Inc. climbed 4.5 percent to C$8.90 and Bankers Petroleum Ltd. added 0.8 percent to C$5.28 as crude prices rose to a three-week high, increasing 2.2 percent this week, amid shrinking U.S. stockpiles. Suncor Energy Inc., the nation’s largest oil producer, rallied 2.6 percent to C$38.19, the highest in almost three years.

Natural Gas

Advantage Oil & Gas Ltd. increased 4.3 percent to C$5.36 after posting a 41 percent increase in funds from operations in the fourth quarter amid rising natural gas prices. The stock has risen for the past 11 days, a record streak.

Teck Resources gained 1.9 percent to C$23.85 and First Quantum Minerals Ltd. increased 2.3 percent to C$20.56 as copper rose 1.6 percent in New York. The price gained 3.1 percent this week, the most since September.

BlackBerry, the Waterloo, Ontario-based smartphone maker, slumped 6.6 percent to C$9.31, the worst decline since November, erasing earlier gains of as much as 6.8 percent to extend a losing streak to four days. BlackBerry posted sales of $976 million in the quarter, a 64 percent slump compared with year-ago figures.

The company also reported an adjusted loss of 8 cents a share, ahead of the 57-cent loss forecast in a Bloomberg survey of analysts.

John Chen, who took over as chief executive officer in November, is working to eliminate a third of the company’s workforce and signed a deal with Foxconn Technology Group to outsource some of its handset production, distribution and design. Last week, BlackBerry agreed to sell most of its real estate in Canada, which could fetch more than $500 million.

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

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

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