Oct. 24 (Bloomberg) -- Canadian stocks rose, after snapping six days of gains yesterday, as resource companies including Agnico Eagle Mines Ltd. reported improving earnings and manufacturing in China grew more than forecast.
Agnico Eagle surged 19 percent and Goldcorp Inc. rallied 4.5 percent as both gold-mining companies reported better-than-projected earnings. Teck Resources Ltd., Canada’s largest diversified miner, advanced 3.8 percent as profit rose on increasing coal sales. Potash Corp. of Saskatchewan Inc. lost 1.6 percent after pricing for the fertilizer plunged. Wi-Lan Inc. sank 23 percent after losing a patent suit against Apple Inc.
The Standard & Poor’s/TSX Composite Index rose 81.43 points, or 0.6 percent, to 13,324.75 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has advanced 7.2 percent in 2013 and is trading at a two-year high.
“Materials stocks have been beaten down so much that it doesn’t take much to get them going, and an earnings beat is one of those things,” said Ian Nakamoto, director of research with MacDougall MacDougall & MacTier Inc., in an interview from Toronto. The firm manages about C$4 billion. “And you also have the China PMI number. Expectations are low, so all you need is a little positive push to get stocks going.”
A preliminary purchasing managers’ index reading for China of 50.9 came in ahead of a 50.4 median estimate from analysts surveyed by Bloomberg. Readings above 50 indicate expansion.
Raw-materials producers gained 2.9 percent as a group, the most in the S&P/TSX, as six of 10 industry groups in the benchmark index advanced. The gauge of commodity producers has lost 26 percent this year. Trading volume for S&P/TSX stocks was about 23 percent higher compared with the 30-day average.
Agnico Eagle jumped 19 percent to C$31.82, the most in almost five years. The company reported earnings that beat analysts’ estimates and said 2013 production and costs will be better than it previously forecast.
Agnico is among gold producers seeking to curb costs and cut spending after the metal slumped into a bear market in April.
Goldcorp, the largest gold miner by market value, gained 4.5 percent to C$27.76 as costs rose less than expected. The company, which operates mines in North and South America, wrote down the value of its assets by $1.96 billion in July and is slowing some project spending and seeking to cut costs. The company is building new mines in Canada and Argentina.
Barrick Gold Corp. gained 4.1 percent to C$20.95 and B2Gold Corp. rose 5.8 percent to C$2.73 as the S&P/TSX Gold Index rallied to a one-month high. Gold for December delivery climbed 1.2 percent to a three-week high.
Teck Resources increased 3.8 percent to C$30.54. The company’s coal sales climbed 36 percent from a year earlier to 7.57 million metric tons in the third quarter, while mine operating costs fell 14 percent to C$50 a ton.
Wi-Lan sank 23 percent to C$3.16, for the lowest close since June 2010. Apple won a patent-infringement trial and fended off a demand for $248 million in royalties for wireless technology used in mobile devices.
Potash Corp. declined 1.6 percent to C$32.41. The price of potash, a key nutrient used in farming, plunged 28 percent after the company’s biggest rival announced plans to raise output.
Potash Corp. received an average price of $307 a metric ton for its potash in the third quarter, compared with $429 a year ago, the company said in a statement.
Buyers of potash, a form of potassium used to boost crop yields, have deferred purchases since the end of July after OAO Uralkali, the world’s largest producer, quit a sales accord with its Belarusian rival and announced plans to boost output and take a larger market share.
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