Canadian stocks rose as railroad companies sent industrial shares higher while energy producers advanced with the price of crude amid signs of increased stimulus from China’s central bank.
Canadian National Railway Co. and Canadian Pacific Railway Ltd. jumped more than 2.2 percent to lead gains among industrial companies. Toronto-Dominion Bank climbed 0.7 percent as financial shares gained. Alimentation Couche-Tard Inc. slid 1.6 percent to lead consumer shares lower.
The Standard & Poor’s/TSX Composite Index gained 52.05 points, or 0.3 percent, to 15,412.60 at the close in Toronto. The gauge halted a two-day slide after closing April 15 at a seven-month high.
China’s leaders swung into stimulus mode, cutting the amount of cash lenders must set aside as reserves by the most since the global financial crisis, just days after a report showed the slowest economic growth in six years. China is Canada’s second largest trading partner after the U.S.
Seven of the 10 main industries in the S&P/TSX gained, with industrials jumping 1.5 percent. Trading volume was 17 percent below the 30-day average.
Energy companies rose 0.3 percent. Trican Well Service Ltd. jumped 5 percent as U.S. crude settled at $56.38 a barrel in New York, near the highest level of the year.
Encana Corp. surged 3.8 percent to a two-month high. The company announced it is seeking buyers for its natural gas properties in Louisiana as it focuses on drilling for oil and other liquids in Texas and Canada, people with knowledge of the matter said. The Haynesville Shale basin acreage is valued at as much as $1 billion, the people said.
Financial companies rose 0.5 percent. The group accounts for about one-third of the S&P/TSX by weighting.