Canada Stocks Rise on Greece Optimism as Materials Shares Climb

Updated on

Canadian stocks capped the biggest two-day rally since February as commodities producers surged and optimism increased over Greece debt negotiations.

Teck Resources Ltd. increased 3.6 percent as copper rose the most in seven weeks on signs manufacturing is stabilizing in China. Energy producers jumped 1.6 percent as crude advanced. Valeant Pharmaceuticals International Inc. rose a second day after submitting a new drug application to the U.S. Food and Drug Administration. BlackBerry Ltd. lost 3.9 percent after the company reported a first-quarter loss wider than analysts’ estimates.

The Standard & Poor’s/TSX Composite Index rose 114.43 points, or 0.8 percent, to 14,904.91 at 4 p.m. in Toronto. The gauge has rallied 1.7 percent in the past two days after almost erasing its 2015 advance on Friday.

Greece’s Prime Minister now has to muster support from his coalition for a plan that aims to stave off the country’s default amid signs of progress on debt talks. Equities rallied in Europe, and American benchmark gauges climbed toward records.

Nine of 10 industries in the S&P/TSX advanced on trading volume 6.3 percent below the 30-day average. Toronto-Dominion Bank and Bank of Nova Scotia increased more than 0.9 percent as financial stocks climbed 0.8 percent as a group.

Teck Resources gained 3.6 percent and HudBay Minerals Inc. increased 2.7 percent as raw-materials producers advanced 0.7 percent.

Copper climbed 1.7 percent in New York and aluminum, zinc, nickel, lead and tin advanced in London. A preliminary Purchasing Managers’ Index for China from HSBC Holdings Plc and Markit Economics edged closer in June to the level that signifies expansion. China is Canada’s second-largest trading partner after the U.S.

UrtheCast Corp. dropped 3.5 percent, following a three-day advance, after selling subscription receipts for shares to help fund its acquisition of Elecnor SA’s Deimos Imaging unit. UrtheCast, which transmits images of the Earth from cameras on the International Space Station, had surged 37 percent in the previous three days.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE