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Canada Stocks Rally a Sixth Day as Gold Jumps on U.S. Jobs Data

Oct. 22 (Bloomberg) -- Canadian stocks rose for a sixth day, the longest streak since April, as banks extended a record high and gold and silver prices surged after U.S. jobs data fueled speculation the Federal Reserve will extend stimulus.

Detour Gold Corp. and B2Gold Corp. rallied at least 7.2 percent as gold climbed to the highest in almost a month. Turquoise Hill Resources Ltd. surged 10 percent to pace gains among materials producers. Canadian Imperial Bank of Commerce added 1.2 percent as the largest lenders rose a ninth day. Pretium Resources Inc. plunged 28 percent after a consultant that withdrew from the company’s Valley of the Kings project said there are “no valid gold mineral resources” at the site.

The Standard & Poor’s/TSX Composite Index rose 61.53 points, or 0.5 percent, to 13,248.06 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has rallied 2.8 percent in the past six days, extending a two-year high.

“The weak U.S. data perpetuates this easy money environment and pushes expectations for tapering of bond-buying in the U.S. out, which is good for stock prices,” said Bob Decker, fund manager with Aurion Capital Management in Toronto. The firm manages about C$6 billion ($5.84 billion). “Gold notionally is a beneficiary, it’s been purged from a lot of portfolios this summer, so it’s forming a base here.”

The U.S. added 148,000 workers in September, following a revised 193,000 rise in August that was larger than initially estimated. The median forecast of 93 economists surveyed by Bloomberg called for a 180,000 advance. The unemployment rate fell to 7.2 percent, the lowest since November 2008.

Metals Rally

Turquoise Hill Resources surged 10 percent to C$5.11 and Endeavour Silver Corp. added 8.3 percent to C$4.98 as raw-materials producers surged 2.7 percent as a group, the most in the S&P/TSX. Six of 10 industries in the benchmark Canadian equity gauge advanced. Trading volume was 19 percent above the 30-day average at this time of the day.

Detour Gold jumped 8.8 percent to C$8.79 and B2Gold added 7.2 percent to C$2.67. Semafo Inc. gained 9.5 percent to C$2.78 as 23 of 24 members of the S&P/TSX Gold Index rose. Gold for December delivery soared 2 percent to $1,342.60, reaching the highest since Sept. 30.

Bombardier Inc. increased 0.6 percent to C$5.33, a two-year high. The aircraft maker has soared 7.7 percent in the past five days, the longest rally since December 2012.

Pierre Beaudoin, chief executive officer with Bombardier, said in an interview yesterday its agreement to sell as many as 30 CSeries aircraft to a Chinese leasing company may prompt more deals in the nation.

RMP Energy Inc. jumped 9.2 percent to C$6.29, the highest close since August 2006, after analyst Anthony Petrucci with Canaccord Genuity raised his rating for the stock to buy from hold.

Banks Advance

Bank of Montreal added 0.7 percent to C$72.63, a six-year high. Canadian Imperial gained 1.2 percent to C$86.41. The S&P/TSX Banks Index has advanced 4.6 percent in the past nine days, the longest streak since 2005. The gauge is up 13 percent this year to a record high.

Pretium Resources sank 28 percent to C$3.45, the lowest since shares began trading in December 2010.

Pretium today reported preliminary results from the processing of bulk samples from Valley of the Kings in British Columbia. The report comes two weeks after the company said Strathcona Mineral Services Ltd., which had been hired to evaluate ore samples, resigned from the project.

In withdrawing from the evaluation program, Strathcona said ore samples showed “there are no valid gold mineral resources for the VOK Zone, and without mineral resources there can be no basis for a feasibility study,” Pretium said today in a statement.

To contact the reporter on this story: Eric Lam in Toronto at elam87@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net

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