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Canadian Stocks Rise on Rebound in Precious Metals, Crude Oil

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Sept. 27 (Bloomberg) -- Canadian stocks rose for a second day as metals and fuels rallied on increasing confidence that European leaders will stem the continent’s debt crisis.

Osisko Mining Corp., which began commercial production at its Malartic mine in Quebec in June, gained 3.7 percent as gold rose the most in seven weeks. Teck Resources Ltd., Canada’s biggest base-metals and coal producer, jumped 3 percent as copper surged the most since 2009. Suncor Energy Inc., the country’s largest oil and gas producer, climbed 2.6 percent as crude rose the most in more than four months.

The Standard & Poor’s/TSX Composite Index gained 113.90 points, or 1 percent, to 11,821.09. The index climbed as much as 3 percent before stocks pared gains in the final hour.

“There is optimism that Europe will start to get ahead of the bailout problems,” Todd Johnson, a money manager at BCV Asset Management in Winnipeg, Manitoba, said in a telephone interview. The firm oversees about C$300 million ($303 million). “Last week there was a lack of leadership. Now they are focused on a solution.”

The S&P/TSX advanced 2.1 percent yesterday after tumbling 6.5 percent, the most since March 2009, last week. The stock benchmark is set to decline for a seventh month, the longest streak since 1984, as raw-materials and energy companies have retreated with commodity prices. The industries make up 47 percent of Canadian stocks by market value, according to Bloomberg data.

Greek Prime Minister George Papandreou won parliamentary backing today for a property tax to meet deficit-reduction targets required to avoid default. Canadian stocks pared gains after the Financial Times reported some euro-area countries are demanding private creditors take bigger writedowns on their Greek bond holdings.

Mining Shares

Canadian precious and base metal mining companies advanced after gold gained for the first time in five days in New York after the biggest three-day drop in 28 years. Silver rose after touching a 10-month low yesterday. Copper advanced after tumbling to a 14-month low.

Osisko Mining gained 3.7 percent to C$13.58. Teck Resources jumped 3 percent to C$32.13. Semafo Inc., which mines gold in West Africa, surged 5.6 percent to C$9.48. OceanaGold Corp., which mines in New Zealand, climbed 8 percent to C$2.30.

First Quantum Minerals Ltd., the country’s second-biggest publicly traded copper producer, increased 9.7 percent to C$16.40. Tahoe Resources Inc., which explores for silver in Guatemala, rallied 6.5 percent to C$16.58.

Fertilizer producers advanced as corn and wheat futures advanced for a second day on speculation that price declines last week increased demand for the crops.

Rating Raised

Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer by market value, increased 1.7 percent to C$49.48. The Saskatoon, Canada-based company was raised to “overweight” from “neutral” at Atlantic Equities LLP. Agrium Inc., a fertilizer producer and farm retailer, climbed 1.5 percent to C$76.14.

The S&P/TSX Energy Index rose 1.4 percent to extend yesterday’s gain as crude futures advanced.

Suncor Energy surged 2.6 percent to C$28.38. Cenovus Energy Inc., the country’s fifth-biggest energy company, gained 1.6 percent to C$32.65. Ivanhoe Energy Inc., an oil-sands developer with projects in Canada and Ecuador, jumped 9.1 percent to C$1.20.

Ivanhoe Mines rebounded from a seven day slump, soaring 16 percent to C$17.42, after Rio Tinto Group increased its stake by 0.5 percent to 49 percent. The shares had declined 9 percent yesterday, after the government of Mongolia said it is seeking to boost its holding in a joint Ivanhoe-Rio Tinto project in the Asian country. Ivanhoe Mines rallied as much as 26 percent today in the biggest intraday advance since February 2009.

To contact the reporter on this story: Kaitlyn Kiernan in New York at kkiernan2@bloomberg.net

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

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