May 2 (Bloomberg) -- Canadian stocks rose, erasing an earlier loss, as commodities prices rebounded and better-than-estimated earnings from Manulife Financial Corp. boosted financial shares.
Canadian Natural Resources Ltd. advanced 1.7 percent as crude rose the most in almost six months. Yamana Gold Inc. added 2.7 percent as gold gained the most in a week. Manulife Financial, the country’s largest insurer, climbed 3.9 percent after earnings beat estimates. Canadian National Railway Co. and Canadian Pacific Railway Ltd. increased more than 1.2 percent. Catamaran Corp., a pharmacy services provider, slumped 7.2 percent after reporting sales that missed estimates.
The Standard & Poor’s/TSX Composite Index rose 58.35 points, or 0.5 percent, to 12,379.64 at 4 p.m. in Toronto. The benchmark equity gauge earlier fell as much as 0.4 percent. Trading volume was 5.8 percent lower than the 30-day average.
“The TSX is going through a period of revaluing where commodities will trade,” said Kash Pashootan, a fund manager with First Avenue Advisory of Raymond James Ltd. in Ottawa. He manages about C$125 million ($124 million). “We’ve had a lot of good news overnight, we’ll see some days where the market bounces and buyers will step in and buy.”
Oil rose for the first time in three days and metals rallied as U.S. jobless claims unexpectedly dropped last week to the lowest since January 2008 and the European Central Bank cut interest rates to a record low today.
The Federal Reserve yesterday maintained the rate of bond buying and said it is “prepared to increase or reduce the pace of its purchases.”
Canada posted its first trade surplus in a year in March, breaking the longest string of deficits in at least 25 years as exporters shipped more energy and mineral products abroad.
The Bank of Canada said after the close of regular trading that Stephen Poloz, the chief executive officer of the nation’s export-financing agency, will replace Mark Carney as head of the central bank on June 3.
Canadian Natural Resources rose 1.7 percent to C$29.49 as crude for June delivery gained 3.3 percent to settle at $93.99 a barrel in New York, its biggest one-day increase since Nov. 6.
Yamana Gold added 2.7 percent to $11.97, rebounding from a 6.5 percent slide yesterday. Gold futures jumped 1.5 percent to settle at $1,467.60.
Financial stocks contributed most to gains in the S&P/TSX, rising 0.7 percent as a group.
Manulife Financial gained 3.9 percent to C$15.33. The company reported earnings of 28 cents a share, ahead of expectations for 27 cents a share. Sun Life Financial Inc. rose 2.3 percent to $28.97.
Industrial shares rallied 0.8 percent. Canadian National Railway rose 1.2 percent to $98.46 and Canadian Pacific Railway jumped 2.8 percent to $126.64.
Health care stocks slumped 3.7 percent, dragged lower by Catamaran. The company, based in Lisle, Illinois, dropped 7.2 percent to C$53.37, the biggest loss since October 2011. Sales of $3.22 billion fell short of the $3.53 billion analysts estimated.
Catamaran maintained its previous 2013 forecast for adjusted earnings of $1.81 to $1.88 per share and sales of $14.2 billion to $14.6 billion.
Goldcorp Inc., the biggest gold producer by market value, lost 0.6 percent to C$28.91 as earnings and output missed estimates. The company reported adjusted first quarter profit of 31 cents a share, trailing the 38-cent average of 21 analyst estimates according to a Bloomberg survey. Sales fell to $1.02 billion from $1.21 billion.
The company produced 614,600 ounces of gold in the quarter, short of the average of five estimates at 624,600 ounces.
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