Feb. 24 (Bloomberg) -- Canadian stocks rose, briefly climbing above the highest closing level since 2008, as gold rallied to a 16-week high and the U.S. benchmark index reached a record.
Detour Gold Corp. rose 3.4 percent to pace gains among miners of the precious metal. BlackBerry Ltd. jumped 6.9 percent to lead technology shares higher after people briefed on the matter said Ford Motor Co. will use the smartphone maker’s operating software in its Sync system.
The Standard & Poor’s/TSX Composite Index rose 21.36 points, or 0.2 percent, to 14,227.08 at 4 p.m. in Toronto. The gauge touched 14,278.63, topping the highest closing level since June 2008. The benchmark index has advanced in 13 of the past 14 sessions, adding 5.5 percent since Feb. 3. The Standard & Poor’s 500 Index advanced 0.6 percent to 1,847.61, after touching an all-time high of 1,858.71 earlier in the session.
“As the S&P establishes new record highs, the focus again shifts back to the TSX, which has not returned to its previous record,” said Andrew Pyle, fund manager with ScotiaMcLeod Inc. in Peterborough, Ontario. He manages about C$220 million ($197 million). “Investors are focused on closing that gap and the TSX establishing its own new record highs. That will likely be the case provided we see continued advances in the U.S. without a major pullback in gold.”
Canadian stocks resumed their rally after falling on Feb. 21, ending the longest winning streak since 1995. The Canadian benchmark is still below its record of 15,073.13 reached in June 18, 2008. It trades at 19.4 times earnings, its highest valuation since April 2011, according to data compiled by Bloomberg.
Raw-materials stocks in the S&P/TSX have soared 18 percent this year to help drive the rally in the equity gauge. The gold price has jumped 11 percent in 2014 after slumping the most since 1981 last year. Gold futures jumped 1.1 percent to settle at $1,338 today.
Detour Gold climbed 3.4 percent to C$10.43. OceanaGold Corp. increased 3.8 percent to C$2.77.
BlackBerry rallied 6.9 percent to C$10.87. Ford, which is struggling with in-car technology flaws, will base the next-generation Sync system on BlackBerry’s QNX and no longer use Microsoft Corp.’s Windows, according to people briefed on the matter.
Industrials, consumer staples and energy companies gained at least than 0.6 percent for the biggest advances among 10 main S&P/TSX industry groups. Oil climbed 0.6 percent to settle at $102.82 today in New York, its first advance in three days.
BlackPearl Resources Inc., an oil and gas exploration and development company, advanced 4.2 percent to C$2.74. Penn West Petroleum Ltd. added 3.3 percent to C$9.12.
Constellation Software Inc. lost 4.1 percent to C$237.43 for the steepest drop in the S&P/TSX after being cut to sector perform from outperform at RBC Capital Markets LLC.
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