Canadian stocks rose as metals and energy producers advanced and investors braced for U.S. and Canadian jobs data tomorrow.
Centerra Gold Inc. rose 6.2 percent and Alacer Gold Corp. added 1.2 percent as the price of gold headed for the biggest weekly gain in two months. Bankers Petroleum Ltd. and Niko Resources Ltd. gained at least 3.6 percent as the price of crude traded near a 14-month high. TransGlobe Energy Corp., an oil and gas producer with operations in Egypt, lost 3.9 percent. WestJet Airlines Ltd. slipped 0.5 percent after reporting that planes were less full in June than a year earlier.
The Standard & Poor’s/TSX Composite Index rose 20.98 points, or 0.2 percent, to 12,166.66 at 4 p.m. in Toronto. The gauge has fallen 2.2 percent this year. With many U.S. markets closed due to the Independence Day holiday, trading volume was 76 percent lower than the 30-day average.
Adly Mansour, chief justice of Egypt’s constitutional court, was sworn in as interim president after the army ousted Mohamed Mursi yesterday amid widespread protests in the country that spiked crude oil prices on concern of shipping disruptions through the Suez Canal.
Mark Carney, in his first meeting as governor of the Bank of England, signaled the bank will keep interest rates at a record low for longer than investors had expected.
“We’re getting some calm out of Egypt, and the Bank of England comments are supportive of accommodative policy which may imply the Fed won’t be as quick to taper QE,” said Philip Petursson, director of institutional equities with Manulife Asset Management Ltd. in Toronto. His firm manages about C$252 billion ($240 million). “The markets want to rally and investors want to put their money to work.”
Nine of 10 industries in the S&P/TSX advanced. Centerra Gold jumped 6.2 percent to C$3.76 and Alacer Gold added 1.2 percent to C$2.48. Gold for August delivery slipped 0.2 percent to $1,249.50 an ounce in New York. The gold price has advanced 2.1 percent this week, headed for the biggest weekly gain since April.
Economists estimate U.S. payrolls grew by 165,000 workers after rising by 175,000 in May, according to the median forecast of economists in a Bloomberg survey ahead of a report from the Labor Department tomorrow. The unemployment rate is expected to drop to 7.5 percent from 7.6 percent.
U.S. Federal Reserve policy makers said last month they would trim bond purchases before the end of the year if unemployment continues to fall.
Canada is forecast to lose 7,500 jobs in June, following a 95,000 increase in May, according to the median estimate of economists surveyed by Bloomberg. The unemployment rate will stay at 7.1 percent.
TransGlobe Energy slumped 3.9 percent to C$6.48. In 2012, the company’s Egyptian operations accounted for 93 percent of its revenue, according to data compiled by Bloomberg.
Bankers Petroleum surged 5.1 percent to C$2.90 and Niko Resources added 3.6 percent to C$9. Crude for August delivery was little changed at $101.12 a barrel in electronic trading in New York after rising to a 14-month high yesterday, crossing the $100 level for the first time since May 2012.
WestJet fell 0.5 percent to C$22.39 after the Calgary-based airliner reported its June load factor declined 2.2 percentage points to 76.8 percent from 79 percent a year earlier, while year-to-date the measure has slipped 0.4 percentage points to 81.9 percent. Load factor measures capacity usage in the airline industry.