June 2 (Bloomberg) -- Canadian stocks rose for a second day as commodities producers advanced after manufacturing expanded at the fastest pace this year in China.
Enerflex Ltd. jumped 7.9 percent after agreeing to acquire some units of Axip Energy Services LP for $430 million. Advantage Oil & Gas Ltd. and Legacy Oil & Gas Inc. added at least 3.2 percent to pace gains among energy stocks. HudBay Minerals Inc. and Teck Resources Ltd. rose more than 1.3 percent as copper advanced. Centerra Gold Inc. plunged 20 percent after threatening to halt its Kumtor gold mine in Kyrgyzstan if it doesn’t receive government approvals for its mine plan.
The Standard & Poor’s/TSX Composite Index rose 76.56 points, or 0.5 percent, to 14,680.72 at 4 p.m. in Toronto. The gauge fell 0.3 percent in May to snap a 10-month winning streak, the longest since 1983.
“Financials and energy have to be up for our market to be up, and I see that’s the story today,” said Ian Nakamoto, director of research at MacDougall MacDougall & MacTier Ltd. in Toronto. His firm manages about C$4.7 billion ($4.31 billion). “Companies with copper exposure are up. People are being selective in the commodities they are trading. The reaction is a bit muted as people are recognizing China’s going through an economic shift here with some less emphasis on infrastructure building.”
China’s Purchasing Managers’ Index climbed to 50.8 in May, the National Bureau of Statistics and China Federation of Logistics and Purchasing in Beijing reported yesterday. Analysts surveyed by Bloomberg News projected a 50.7 median estimate. April’s reading was 50.4.
HudBay Minerals advanced 2.2 percent to C$9.77 and Lundin Mining Corp. rose 3.9 percent to C$5.91. Copper advanced the most in three weeks in New York, rising 1.4 percent. Teck Resources, the largest diversified miner in Canada, added 1.4 percent to C$24.50. Labrador Iron Ore Royalty Corp. jumped 6.4 percent to C$29.88, the biggest increase since October 2011.
Rogers Communications Inc. rose 1.4 percent to C$44.60 and Telus Corp. added 1.4 percent to C$41.45 as telephone stocks increased 1.1 percent as a group, the second-biggest gain in the S&P/TSX with seven of 10 industries advancing. Trading volume was 6 percent lower than the 30-day average.
Enerflex soared 7.9 percent to C$17.62, the biggest increase since 2011, after agreeing to buy Axip’s international contract compression and processing business as well as its after-market business. The deal includes Axip’s gas treating facilities in Mexico, Argentina and Peru.
Advantage Oil & Gas jumped 3.2 percent to C$6.73 and Legacy Oil & Gas rose 3.5 percent to C$8.80 as the S&P/TSX Energy Index rallied 0.8 percent for a fourth day of gains.
Centerra Gold slumped 20 percent to C$3.70, the biggest decrease since October. Centerra will shut all mine and mill operations at its Kumtor mine by June 13 if the company doesn’t get the government permits and approvals it seeks, the Toronto-based company said in a statement.
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