Canadian stocks rose, snapping a four-day slump, as commodities prices advanced, overshadowing a slump in mining companies after Goldcorp Inc. cut its gold-production forecast.
Energy stocks led gains in the Standard & Poor’s/TSX Composite Index as a group, as mining stocks fell the most. Goldcorp dropped 10 percent after the company cited lower expected output from Mexico and Canada in reducing its estimate. Rising oil prices boosted Cenovus Energy Inc. and Enbridge Inc. at least 1.6 percent.
The S&P/TSX gained 37.36 points, or 0.3 percent, to 11,549.58 at 1:06 p.m. in Toronto. It slid as much as 0.2 percent earlier. The benchmark index lost 3.4 percent over the previous four days.
“The sentiment today, in general, is positive with the exception of Goldcorp,” Wes Mills, who is part of a team that manages C$90 billion at Toronto-based Scotia Asset Management, said in a phone interview. “It’s not terrible for the overall index, but it has hurt it. The index is shaking it off.”
Goldcorp, the world’s second-biggest producer of the metal, fell 10 percent, the most in three years, to C$33.83. Output for the year will be 2.35 million to 2.45 million ounces, compared with a previous forecast of 2.6 million ounces, the Vancouver-based company said yesterday in a statement.
Barrick Gold Corp., the world’s largest gold miner, dropped 1.5 percent to C$35.83. Centerra Gold Inc. advanced 6.2 percent to C$7.67.
Cline Mining Corp., a coal mining company with deposits on Canada’s West Coast, plunged 39 percent to 37 cents after saying it will temporarily suspend output at a U.S. mine while reviewing plans for the operation.
Frontier Rare Earths Ltd. advanced 31 percent to 63 cents, the most intraday since listing in Toronto in November 2010, after a C$23.8 million investment by Korea Resources Corp. in the company’s rare earth project in South Africa.
Cenovus Energy rose 3 percent to C$33.22 as energy stocks gained. Suncor Energy Inc., the nation’s largest oil company, increased 1.9 percent to C$29.27. Canadian Oil Sands Ltd. advanced 3.7 percent to C$19.44.
Enbridge, the largest transporter of Canadian crude to the U.S., added 1.6 percent to C$40.82 as the company addressed safety concerns over a 2010 oil spill. A U.S. safety board released findings yesterday that showed the company knew of cracks in its pipeline for at least five years before a July 25, 2010, spill in Michigan, and didn’t react to the rupture for 17 hours after it was discovered. Stephen Wuori, president for liquids pipelines, said the company is focused on preventing future mishaps.