Canadian stocks rose, after erasing gains for the year yesterday, to pare a June decline as consumer and health-care shares rebounded.
ProMetic Life Sciences Inc. soared 16 percent to lead health-care shares higher, while Valeant Pharmaceuticals International Inc. added 1.5 percent. Magna International Inc. gained 1.7 percent amid a report the auto parts company is interested in acquiring German transmissions maker Getrag. Element Financial Corp. climbed 2.9 percent to a record. Bankers Petroleum Ltd. added 5.8 percent as oil recovered from a two-month low.
The Standard & Poor’s/TSX Composite Index rose 63.18 points, or 0.4 percent, to 14,553.33 at 4 p.m. in Toronto, after plunging 2.2 percent yesterday. The benchmark equity gauge retreated 3.1 percent in June, and fell 2.3 percent for the quarter. It is down 0.5 percent for the year.
“The fact we’re seeing the bounceback so quickly is evidence the market is still confident and optimistic,” said Kash Pashootan, a portfolio manager at First Avenue Advisory of Raymond James Ltd. in Ottawa. His firm manages about C$225 million. “So it’s a positive. But the question marks around Greece yesterday still exist today, so we’re a bit cautious about buying in now.”
All 10 industries in the S&P/TSX rose, led by a 1.6 percent advance in health-care shares, on trading volume 6.5 percent higher than the 30-day average.
German Chancellor Angela Merkel dismissed a request for aid from Greece hours before its bailout expires and a payment deadline to the International Monetary Fund passes. Merkel rejected talks before a July 5 referendum in Greece on further budget cuts. Greece has until 6 p.m. New York time to make a $1.7 billion payment to the IMF as Europe’s funding program expires.
Canada’s economy unexpectedly shrank for the fourth month in a row, opening the door to a second interest-rate cut from the central bank this year. Output slipped 0.1 percent in April as oil and mining slumped, according to data from Statistics Canada. None of the 20 economists surveyed by Bloomberg predicted a decline and their median estimate was for a 0.1 percent expansion.
The Shanghai Composite Index climbed 5.5 percent, rebounding after entering a bear market yesterday. China’s stock market has plunged as leveraged speculators unwind their positions and a growing number of analysts warn that valuations have climbed too far. China is Canada’s second-largest trading partner after the U.S.