Canadian stocks rose, after their worst weekly drop since June, as rallies in the price of copper and gold boosted mining companies.
Lundin Mining Corp. rose 6 percent and Thompson Creek Metals Company Inc. gained 7.7 percent as copper rose as much as 2.4 percent, the most since December. Valeant Pharmaceuticals International Inc. fell as Allergan Inc. rejected the drugmaker’s unsolicited takeover offer. Canadian Tire Corp. fell 1 percent after Credit Suisse cut the stock to the equivalent of a sell.
The Standard & Poor’s/TSX Composite Index rose 120.88 points, or 0.8 percent, to 14,654.94 at 4 p.m. in Toronto, the largest increase since April 16. Investors are jumping back into the market after being spooked by a sell-off in energy companies last week, said Bruce Campbell fund manager at StoneCastle Investment Management Inc.
“There certainly seemed like there were moments last week of the first little inklings of panic,” he said by phone from Kelowna, British Columbia. His firm manages about C$100 million ($92 million). Today the market is making up for that panicked selling, he said.
Energy companies fell 2.6 percent last week after rising 15 percent from January to the end of April.
Mining companies in the Canadian benchmark index rose 1.5 percent as a group today, the most since May 2.
Gold for June delivery rose 0.6 percent to $1,295.80 an ounce after rising as much as 1.3 percent as Russian President Vladimir Putin said he respected the results of referendums in eastern Ukraine which separatists said were in favor of independence.
Copper producers including Lundin, Thompson Creek, Nevada Copper Corp., Western Copper and Gold Corp. and Copper Mountain Mining Corp. all rose at least 6 percent.
Valeant Pharmaceuticals fell 0.7 percent to C$141.98 after Allergan said Valeant’s offer “substantially undervalues” the company. Valeant is trying to buy the Botox producer with the help of Bill Ackman’s Pershing Square Capital Management LP, Allergan’s biggest shareholder.
Canadian Tire fell 1 percent to C$110.19 as Credit Suisse downgraded it. The retailer sold 20 percent of its banking business to Bank of Nova Scotia last week for $500 million in cash.
UrtheCast Corp. fell 9.6 percent to C$1.32 after reporting a first quarter loss of 6 Canadian cents per share. The Vancouver-based space imaging company also released a new photo of Earth today taken from its camera on the International Space Station.
Alliance Grain Traders Inc. rose 4.2 percent to $18.99 after reporting higher first quarter revenue than the same period last year. Alliance Grain Traders processes markets beans, peas and lentils.
Athabasca Oil Corp. dropped 5.6 percent to C$7.28, the most since October, after GMP Securities LP cut its rating on the oil sands producer to hold from buy. The Calgary-based company has risen 12 percent so far this year.