Nov. 29 (Bloomberg) -- Canadian stocks rose a third day, capping a fifth straight monthly advance, as data showed growth in Canada accelerated in the third quarter at the fastest pace in two years amid a gain in consumer spending.
Atrium Innovations Inc., a cosmetics and pharmaceutical products maker, soared 23 percent after agreeing to sell itself to a group led by Permira funds. Argonaut Gold Inc. increased 4.5 percent as the metal climbed the most in two weeks. Air Canada, the nation’s largest airline, jumped 5.7 percent for a third day of gains.
The Standard & Poor’s/TSX Composite Index rose 24.57 points, or 0.2 percent, to 13,395.40 at 4 p.m. in Toronto, trimming an earlier gain of as much as 0.9 percent. The benchmark equity gauge added 0.3 percent in November for a fifth month of increases, the longest streak in more than a year.
“We are seeing the Canadian stock market reacting quite favorably to the GDP figures,” said John Tsagarelis, a fund manager at Manulife Asset Management Ltd. in Toronto. He helps manage C$252 billion ($238 billion) with the firm. “It’s a broad-based increase including metals and energy, which have lagged somewhat in the past couple of weeks. It will be difficult for people to take risk off the table now.”
Canada’s economy grew at an annualized pace of 2.7 percent in the third quarter, its fastest rate in two years and ahead of the median economists’ forecast of 2.5 percent growth.
“A strengthening U.S. economy and highly stimulative Bank of Canada monetary policy will sustain above-potential growth through the end of next year,” said Paul Ferley, assistant chief economist at RBC Capital Markets, in a note to clients.
Raw-materials and energy stocks each rallied 0.4 percent as a group as seven of 10 industries in the S&P/TSX advanced. Trading volume was 38 percent lower compared with the 30-day average at this time of the day.
BlackPearl Resources Inc. jumped 4.8 percent to C$2.41 and Cenovus Energy Inc. increased 1.7 percent to C$30.93 as crude for January delivery rose for the first time in five days, up 0.5 percent to $92.72 a barrel in New York.
Argonaut Gold added 4.5 percent to C$5.61 and B2Gold Corp. increased 3.3 percent to C$2.22 as the S&P/TSX Gold Index rallied 1 percent. Barrick Gold Corp., the largest gold producer by market value, advanced 1 percent to C$17.61.
Pan American Silver Corp. rose 5.1 percent to C$11.34. The company will buy back up to 5 percent of its stock, or about 7.57 million shares, it said in a statement.
Air Canada, the best-performing stock in the S&P/TSX this year, surged 5.7 percent to C$7.56, highest since June 2008, as industrial stocks jumped 0.6 percent for the biggest gain in the benchmark equity gauge. Air Canada has soared 332 percent this year.
Canadian Pacific Railway Ltd. increased 0.7 percent to C$161.89, a record high, after hiring Bart Demosky as the company’s chief financial officer. Demosky served as CFO at Suncor Energy Inc.
Suncor, Canada’s largest oil producer, rose 0.3 percent to C$36.42.
Atrium Innovations soared 23 percent to C$24.25, a record gain. Permira will own 75 percent of Atrium, paying C$24 a share, valuing the company at about C$751 million.
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