Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Canadian Stocks Advance as Greek-Default Concern Diminishes

July 4 (Bloomberg) -- Canadian stocks rose for a fifth day, led by commodity producers, after an index of U.S. manufacturing beat economists’ forecasts and Europe’s finance ministers approved an aid payout to Greece to prevent default.

Teck Resources Ltd. gained 4.8 percent in the first session since the Canada Day holiday on July 1. Suncor Energy Inc. advanced 1.8 percent after the Institute for Supply Management’s factory index surpassed all 77 forecasts in a Bloomberg survey. Sino-Forest Corp., the forestry company fighting a short seller’s assertions of financial manipulation, climbed 30 percent after hedge-fund manager Wellington Management Co. said in a filing it bought a stake in the company.

The Standard & Poor’s/TSX Composite Index increased 85.62 points, or 0.6 percent, to 13,386.49, closing above its 200-day moving average for the first time since June 9. The index’s fifth-straight gain is the longest streak of advances in six weeks.

“There’s a bit of readjusting to prices of interlisted stocks that were traded on Friday that didn’t trade in Canada, but also a continuation of positive data over the short term, including the recent ISM data out of the U.S.,” said Timothy Lazaris, chief executive officer of Red Sky Capital Management Ltd. in Toronto, which oversees C$54 million ($56 million).

The stock benchmark rallied 3 percent last week, the most in 11 months, after Greece’s parliament passed austerity measures meant to reduce its debt. The index has risen 4.7 percent since declining to a seven-month low on June 17.

Greek Package

European finance ministers authorized on July 2 an 8.7 billion euro ($12.6 billion) loan payout to Greece to be paid by mid-July and said they would aim to complete talks with banks on maintaining their Greek debt holdings within weeks.

Energy companies climbed for a fifth day. Suncor, Canada’s largest oil and gas producer, rose 1.8 percent to C$38.49. Canadian Natural Resources Ltd., the country’s second-largest energy company by market value, gained 1.2 percent to C$40.91. Bankers Petroleum Ltd., which produces oil and gas in Albania, advanced 6 percent to C$7.29.

Transglobe Energy Corp., which operates in Egypt and Yemen, jumped 13 percent, the most since January 2009, to C$12.47. Last week, the company said it has agreed to buy a 50 percent interest in an Egyptian oil concession for $3 million. The land has “extensive exploration potential,” J. Frederick Kozak, an analyst at Canaccord Financial Inc., said in a note to clients dated June 30.

Copper futures increased 0.5 percent on July 1, completing a 4.5 percent weekly climb, and advanced 0.2 percent in London today.

Teck, Canada’s largest base-metals and coal producer, rose 4.8 percent to C$51.36. First Quantum Minerals Ltd., Canada’s second-largest publicly traded copper producer, gained 1.2 percent to a record C$142.35. Mercator Minerals Ltd., which mines copper and molybdenum, surged 10 percent to C$3.16.

ARMZ Profit

Uranium One Inc., a mining company controlled by Moscow-based ARMZ Uranium Holding, soared 15 percent to C$3.05 after the Russian company said profit doubled last year.

Romarco Minerals Inc., which is developing a gold mine in South Carolina, plunged 7.3 percent to a 16-month low of C$1.52 after the U.S. Army Corps of Engineers asked it to complete an environmental impact statement, adding 12 months to the project’s schedule.

All eight S&P/TSX banks advanced. Royal Bank of Canada, the country’s largest lender by assets, increased 1.4 percent to C$55.58. Bank of Montreal, the country’s No. 4 lender, climbed 1.1 percent to C$62.03.

Technology-patent owner Wi-LAN Inc. rallied 8.4 percent to a 10-year high of C$8.43 after saying it reached a settlement in its lawsuit against Texas Instruments Inc. Terms of the deal weren’t disclosed.

Sino-Forest advanced 30 percent to C$4.15 after Wellington Management said it bought or acquired control of an 11.5 percent stake in the company. The shares tumbled 83 percent last month as Muddy Waters LLC said its stated land holdings don’t match Chinese city records.

-- With assistance from Stephen Kirkland in London. Editors: Steven Frank, Jeff Sutherland.

To contact the reporter on this story: Matt Walcoff at Mwalcoff1@bloomberg.net.

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.