Canadian stocks advanced, paring a weekly decline, as oil prices rose on speculation that China’s government will boost stimulus measures and gold gained for the first time in four days.
Goldcorp Inc. and China Gold International Resources Corp. added at least 2.1 percent. Suncor Energy Inc., the nation’s largest oil company, climbed 1.9 percent. Energy, raw-materials and financial shares contributed most to the advance in the Standard & Poor’s/TSX Composite Index, with nine of 10 groups advancing.
The S&P/TSX gained 89.06 points, or 0.8 percent, to 11,514.53, with almost three stocks rising for each that fell in the gauge. For the week, the Canadian equity benchmark lost 1.3 percent, the biggest decline in six weeks.
“The China GDP number was certainly weaker than a lot of people expected,” Andrew Hamlin, who manages C$80 million for Toronto-based Aston Hill Financial Inc., said in a phone interview. “What we have is bad news that maybe is not so bad news, because it could potentially open the door to new stimulus in China.”
China’s growth slowed for a sixth quarter to the weakest pace since the global financial crisis, raising speculation that Premier Wen Jiabao will boost stimulus to secure a second-half economic rebound. Gross domestic product expanded 7.6 percent last quarter, the National Bureau of Statistics said today in Beijing. The number was in line with China’s 2012 target, which was lowered to 7.5 percent in early March.
Goldcorp gained 2.5 percent to C$34.53 as the metal rallied 1.5 percent on the Comex in New York. China Gold International rose 2.2 percent to C$2.81.
Oil advanced for a third day, its longest winning streak in a month. Suncor Energy climbed 1.9 percent to C$29.41. Cenovus Energy Inc. increased 2.1 percent to C$33.28. Canadian Natural Resources Ltd., the nation’s third-largest energy company, gained 1.2 percent to C$26.41.
Baja Mining Corp., which is building a copper mine in Mexico, fell 13 percent to 14 cents, the lowest since 2003. The company said it has not yet found new sources of funding and may not have enough cash to continue operations by next month.