Jan. 22 (Bloomberg) -- Canadian stocks rose for the sixth time in seven days after Bank of Canada governor Stephen Poloz maintained the benchmark interest rate and said the direction of the next move will depend on the economy.
BlackBerry Ltd. climbed 9.9 percent on plans to sell most of its Canadian real estate for cash. Gran Tierra Energy Inc. rallied 10 percent after FirstEnergy raised its rating on the stock. Torex Gold Resources Inc. plunged 5 for a second day of losses after announcing it is seeking to raise C$125 million in a share offering.
The Standard & Poor’s/TSX Composite Index increased 36.43 points, or 0.3 percent, to 13,988.20 at 4 p.m. in Toronto after losing 0.1 percent earlier. The gauge has advanced 2.7 percent this year.
“The market’s just awaiting the earnings picture that begins next week,” John Kinsey, fund manager with Caldwell Securities Ltd. in Toronto, said by phone. The firm manages about C$1 billion ($916.6 million). “The market will probably go quiet until we see some of these numbers. It’s had a good run the last little while and we’re hopeful that with the large commodity content that it has, the world economies are going to do a little better in 2014 than in 2013, and that will be beneficial for our markets.”
Policy makers kept the benchmark rate on overnight loans between commercial banks at 1 percent, where it’s been since September 2010, as expected by all 21 economists in a Bloomberg News survey. The bank’s updated forecast lifted the outlook for 2014 economic growth to 2.5 percent from 2.3 percent and said inflation will be further below target throughout 2014.
The Canadian dollar, or the loonie, lost 1 percent to a four-year low of C$1.1087 per U.S. dollar. The loonie has fallen against all of its 16 major peers this year after Poloz said he’s concerned that inflation is too low.
BlackBerry rallied 9.9 percent to C$11.96. The struggling smartphone maker is working with CBRE Group Inc. to sell vacant properties as well as occupied space it would then lease back from buyers, according to a statement today. The assets cover more than 3 million square feet (280,000 square meters), the amount of office space in the 104-story One World Trade Center skyscraper in lower Manhattan.
Gran Tierra rallied 10 percent to C$8.58. The stock was raised to top pick from market perform by FirstEnergy analyst Darren Engels after the company reported “significant” reserves at its Bretana field in Peru.
Torex Gold plunged 5 percent to C$1.14, extending yesterday’s 9.8 percent decline, after the mining company said it will sell shares at C$1.20 each to finance the development of its El Limon and Guajes projects and for general corporate purposes.
Bombardier Inc. slipped 1 percent to C$3.91. Chief Executive Officer Pierre Beaudoin said the company will not have to raise additional funds this year after delaying delivery of its CSeries narrow-body plane for a fourth time.
The manufacturer delayed its CSeries jetliner again on Jan. 16, saying the aircraft won’t enter commercial service until late next year instead of 2014 because it needs more time for tests.
Penn West Petroleum Ltd. dropped 9 percent to C$8.22. The company may have a higher risk of missing expected production rates, AltaCorp Capital Inc. analyst Jeremy McCrea wrote in note. RBC analyst Greg Pardy said the oil and gas explorer should divest assets with “modest” output to improve its balance sheet.
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