Canada Stocks Rise to 1-Month High as Oil, Consumer Shares Gain

Canadian stocks rose for a third day, sending the benchmark index to a one-month high, as energy shares advanced with the price of oil and Dollarama Inc. helped lead a gauge of consumer stocks higher.

Centerra Gold Inc. jumped 6.5 percent after Bank of Nova Scotia raised its rating on the stock. Enerflex Ltd. added 7.8 percent for a second day of gains following an acquisition. Toronto-Dominion (TD) Bank paced gains among financial firms. Dollarama rose to the highest since its 2009 initial public offering.

The Standard & Poor’s/TSX Composite Index (SPTSX) added 53.93 points, or 0.4 percent, to 14,734.69 at 4 p.m. in Toronto. The gauge fell 0.3 percent in May to snap a 10-month winning streak, the longest since 1983. The price-to-earnings ratio for the benchmark equity gauge is 19.7, the highest since 2011.

“It’s a grinding-out type of atmosphere today,” said Greg Eckel, fund manager at Morgan Meighen & Associates Ltd. in Toronto. His firm manages C$1.4 billion ($1.28 billion). “In an atmosphere of calm it keeps grinding higher. It’s got that momentum until there’s an event that changes that or clear data that changes that sentiment.”

Birchcliff Energy Ltd. rose 2.7 percent to C$14.04 and Advantage Oil & Gas Ltd. increased 1.8 percent to C$6.85 as natural gas futures advanced for a second day in New York. Gas rose 0.4 percent to settle at a four-week high on speculation bursts of hotter U.S. weather will stoke demand.

Enerflex

Enerflex, an oilfield services company, jumped 7.8 percent to a record C$18.99. Enerflex has rallied 16 percent in two days since agreeing to acquire some units of Axip Energy Services LP for $430 million.

Maple Leaf Foods Inc. gained 1.2 percent to C$18.87 as consumer staples stocks added 0.6 percent as a group. Dollarama rose 0.2 percent to C$93.08 for a fifth day of gains.

Six of 10 industries rose today on trading volume 15 percent higher than the 30-day average.

Toronto-Dominion, the nation’s largest lender by assets, added 0.7 percent to C$54.35, extending a record high with a third day of gains.

Centerra Gold climbed 6.5 percent to C$3.94. Scotia analysts upgraded the stock a day after it sank 20 percent as the company threatened to shut a Kyrgyzstan mine if it did not receive government permits this month. Analyst Trevor Turnbull said he expects the company to get the approval.

Iamgold Corp. jumped 12 percent to C$3.71, the most since August. The company said it had no news pending and didn’t know why the shares rose.

First Quantum Minerals Ltd. sank 1.7 percent to C$22.56 and Teck Resources Ltd. slipped 1.2 percent to C$24.19. Copper fell 1.1 percent in New York, the most in four weeks.

B2Gold Corp. (BTO) lost 3.4 percent to C$2.53, the lowest since January, after agreeing to buy Papillon Resources Ltd. for about $570 million to gain access to a project in Mali. The Vancouver-based company is looking to gain control of Papillon’s Fekola gold project in Mali. The combined company may produce more than 900,000 ounces from five mines by 2017, B2Gold said in a statement.

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 Michael P. Regan

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