Dec. 23 (Bloomberg) -- Canadian stocks rose to the highest closing level in four weeks, as data showed the nation’s economy grew a fourth straight month, led by gains in manufacturing and wholesale trade.
Reitmans Canada Ltd. rallied 9 percent after Fairfax Financial Holdings Ltd. acquired shares of the clothing retailer. Toronto-Dominion Bank, the nation’s largest lender, gained 0.8 percent. Niko Resources Ltd. surged 24 percent after raising cash through a private placement and receiving loans from some investors. Detour Gold Corp. fell 4.5 percent to pace losses among gold miners.
The Standard & Poor’s/TSX Composite Index rose 48.10 points, or 0.4 percent, to 13,447.70 at 4 p.m. in Toronto, for the highest close since Nov. 25. The benchmark equity gauge has risen 8.2 percent this year.
“Seasonally, it’s pretty positive going into the end of the year,” said Bruce Campbell, fund manager at StoneCastle Investment Management Inc. from Kelowna, British Columbia. The firm manages about C$100 million ($94.5 million). “We continue to see things move in the right direction. Over the last three or four months, we’ve seen a bit of a synchronization across all the global economies, a little better numbers across the board. Canada bottomed out at the beginning of this year and now we’re inching toward economic growth.”
Canada’s gross domestic product rose 0.3 percent in October. Analysts surveyed by Bloomberg had forecast a 0.2 percent expansion, based on the median of 15 estimates.
BlackBerry Ltd. advanced 3.1 percent to C$7.98 to pace gains among technology stocks. The group climbed 0.6 percent, as eight of 10 industries in the S&P/TSX rose. Trading volume was 34 percent lower compared with the 30-day average.
The Waterloo, Ontario-based company has surged 23 percent in the past three days, the biggest gain for that time span since February, as the company announced a five-year plan on Dec. 20 to outsource smartphone production to Foxconn Group.
Reitmans Canada surged 9 percent to C$6.92, the biggest gain since 2009. Fairfax Financial acquired 2 million Reitmans Class A shares at C$6.35 a share for C$12.7 million total. The acquisition raises Fairfax’s holdings in the company to 13.8 percent of Class A shares outstanding, it said in a release.
Financial stocks added 0.4 percent as a group. TD Bank added 0.8 percent to C$98.93, a record close. The stock has rallied 4.3 percent in the past seven days, the longest winning streak since November. Royal Bank rose 0.8 percent to C$70.80.
Niko Resources jumped 24 percent to C$3.18. The company said it will receive $340 million in loans from some institutional investors and its fourth-quarter production will increase.
The oil and gas explorer said Dec. 19 it had raised about C$33 million through a private placement of subscription receipts. The company said it will use the cash to pay a portion of its debt. The stock has soared 64 percent in the past two days.
Kinross Gold slipped 2.8 percent to C$4.56 and Detour Gold dropped 4.5 percent to C$3.61. Gold futures fell in New York on speculation less stimulus from the Federal Reserve and an improving U.S. economy will cut demand for bullion as a protection of wealth.
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