Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Canada Stocks Rise Amid U.S. Budget Optimism as Air Canada Jumps

Canadian stocks rose for the first time in three days as Air Canada soared, offsetting a drop in technology stocks amid optimism U.S. lawmakers will reach a solution to end a budget impasse.

Air Canada, the nation’s largest airline, surged 13 percent after it said third-quarter earnings will be higher than last year. TransGlobe Energy Corp. jumped 7.7 percent for a second day of gains after receiving approval for four land concessions from the Egyptian government. Ballard Power Systems Inc. sank 15 percent after announcing it would sell about 9 million units.

The Standard & Poor’s/TSX Composite Index rose 23.53 points, or 0.2 percent, to 12,758.65 at 4 p.m. in Toronto, paring a weekly decline to 0.7 percent. The index has gained 2.6 percent this year. Trading volume was 23 percent lower compared with the 30-day average.

“It’s a spillover from yesterday’s sell-off, there are some bargain hunters in the market,” said Ian Nakamoto, director of research with MacDougall MacDougall & MacTier Inc. in Toronto. The firm manages about $4 billion. “Obviously there’s the situation in Washington. I don’t see the default of the U.S. being that likely and the reason is no party wins political points for that.”

A partial U.S. government shutdown entered a fourth day amid wrangling by lawmakers over the budget and debt limit. Bill Gross of Pacific Investment Management Co. and BlackRock Inc.’s Larry Fink said the deadlock will be resolved soon, limiting damage to the economy.

House Speaker John Boehner has been telling fellow Republicans that he won’t allow the U.S. to default on its debt, according to two Republican congressional aides. Boehner, speaking to reporters, said Democrats need to negotiate with him and accept changes to the Affordable Care Act to end the shutdown.

Air Canada

Air Canada surged 13 percent to C$4.47 for the biggest gain in the S&P/TSX and the highest close since November 2008. The airline, the best-performing stock in the benchmark equity gauge this year with a 155 percent increase, said its third-quarter results, including adjusted net income, will be higher than last year. Analysts surveyed by Bloomberg have estimated earnings of 96 Canadian cents a share for the quarter.

Cameron Doerksen, analyst with National Bank Financial, raised his price target for Air Canada by 27 percent. Fadi Chamoun, analyst with BMO Capital Markets, boosted his target to C$5 from C$4.

TransGlobe added 7.7 percent to C$9.49, the biggest gain since November. The stock has rallied 13 percent in the past two days since the Egyptian government ratified into law four production sharing concessions in the country that will increase TransGlobe’s land position there by 160 percent to 1.3 million acres.

Tropical Storm

Legacy Oil & Gas Inc. rose 2.8 percent to C$6.57 and Suncor Energy Inc. added 1 percent to C$36.69 as crude advanced in New York. Tropical Storm Karen is pushing through the Gulf of Mexico to the U.S. coast, threatening crude production in the region.

First Quantum Minerals Ltd. gained 3 percent to C$18.38, the most in a month, as copper rose for the second time in three days.

Davis & Henderson Corp. slipped 1.4 percent to C$26.14 and BlackBerry Ltd. lost 0.9 percent to C$7.90 to pace declines among technology stocks.

Ballard Power, which designs and manufactures hydrogen fuel cells, slumped 15 percent to C$1.42, the biggest decline since March. The company yesterday said it will sell about 9 million units at $1.40 a unit for proceeds of about $12.6 million. The cash generated will be used to fund working capital, support growth and general corporate purposes, the company said.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.