Canadian Stocks Advance for Biggest Weekly Gain in 11 Months

Canadian stocks rose, capping the biggest weekly gain in 11 months, as gold and oil advanced while the nation’s inflation rate remained near the bottom of the central bank’s target band for a third month in October.

Pretium Resources Inc. added 8.9 percent after an analyst with CIBC World Markets Inc. raised his rating on the stock. Colossus Minerals Inc. and Centerra Gold Inc. rose at least 2.1 percent as the price of the metal rallied the most since Nov. 6. Research In Motion Ltd. fell 3.5 percent a day after posting its biggest increase in more than three years. Gildan Activewear Inc. dropped 3 percent after an analyst with BofA/Merrill Lynch lowered the stock’s rating.

The Standard & Poor’s/TSX Composite Index rose 60.14 points, or 0.5 percent, to 12,213.24 in Toronto. The benchmark Canadian equity gauge advanced 2.8 percent for the week, the biggest weekly gain since December 2011.

The Bank of Canada continuing to hold the benchmark interest rate at 1 percent “remains a positive for the equity market,” said John O’Connell, chief executive officer at Davis-Rea Ltd., from Toronto. His firm manages about C$575 million ($578.8 million). “The BoC keeps talking a courageous story about raising rates, but we continue to see modest economic growth.”

Canada CPI

The Canada consumer price index rose 1.2 percent in October from a year ago, the same as the prior two months, as slower gains in energy prices blunted increases in property taxes and restaurant meals, Statistics Canada said today.

Mark Carney, governor of the Bank of Canada, has held lending rates at 1 percent since September 2010. Economists surveyed by Bloomberg estimate the key interest rate will rise to 1.25 percent in the third quarter next year.

Gold mining companies, energy and financial stocks contributed most to gains on the S&P/TSX as nine of 10 industries advanced. Trading volume was 18 percent lower than the 30-day average at this time of the day.

Pretium Resources jumped 8.9 percent to C$14.15. Jeff Killeen, analyst with CIBC World Markets, raised the stock to sector perform from sector underperform after the company released an updated resource estimate for its Brucejack project showing a 66 percent increase to 8.5 million indicated ounces of gold.

Colossus Minerals added 4.4 percent to C$4.55 and Centerra gained 2.1 percent to C$9.90 as gold futures for December delivery added 1.3 percent to settle at $1,751.40 an ounce in New York. Gold rose 2.1 percent this week as the U.S. dollar fell to a three-week low.

Talisman Gains

Talisman Energy Inc. advanced 3.8 percent to C$11.68 and Canadian Natural Resources Ltd. added 1.1 percent to C$27.94 as crude capped the biggest weekly gain in more than a month. Oil for January delivery rose 1 percent to settle at $88.28 a barrel in New York. Futures climbed 1.9 percent this week, the most since Oct. 12.

RIM, whose BlackBerry 10 smartphones are set to go on sale in February, fell 3.5 percent to C$11.61 a day after the stock rallied the most in more than three years. An analyst with National Bank Financial lifted his price target for U.S. shares to $15 from $12, saying sales of the new phones will be better than estimated.

Gildan, the best performing North American underwear stock this year, fell 3 percent to C$33.17. Chris Li, an analyst with BofA/Merrill Lynch, lowered the stock’s rating to neutral from buy.

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