Canadian stocks rose, after the biggest rally in six months yesterday, as Suncor Energy Inc. led a rally in energy companies on better-than-estimated earnings.
Suncor added 6.3 percent as its quarterly profit more than tripled and it cut spending plans. Potash Corp. of Saskatchewan Inc. gained 1.1 percent as the company said it may sell some assets. Bombardier Inc. plunged 9.7 percent after delaying its Global 7000 business jet by two years. First Quantum Minerals Ltd. lost 10 percent after quarterly results missed analysts’ estimates.
The Standard & Poor’s/TSX Composite Index rose 80.96 points, or 0.6 percent, to 14,382.76 at 4 p.m. in Toronto. The S&P/TSX has slumped 1.2 percent in July, headed for a third monthly decline, the longest such streak since 2012.
Investors are considering earnings from 28 companies in the S&P/TSX today from Quebecor Inc. to Cenovus Energy Inc. Suncor Energy surged the most since December on its earnings and as the company cut its spending plan for 2015 for a second time.
Energy producers in the S&P/TSX jumped 2.3 percent, the most in six months. Raging River Exploration Inc. and Arc Resources Ltd. gained at least 5.6 percent. Raw-materials and energy companies are the worst-performers in the S&P/TSX this year amid a rout in commodities prices that has driven oil into a bear market and gold to a five-year low.
Volatility in Europe and China has increased concern the global economy is slowing, resulting in lower demand for raw materials.
The Bloomberg Commodity Index of 22 raw materials lost 0.5 percent, halting a two-day advance. The gauge is down 9.8 percent in July, the most since September 2011, after dropping to a 13-year low this month. West Texas Intermediate crude is heading for its biggest monthly fall since December as copper led base metals lower.
Open Text Corp. surged 22 percent, the biggest gain since August 2007, after the company posted earnings ahead of analysts’ estimates. Open Text may also take the U.S. Internal Revenue Service to court to fight a proposed tax increase stemming from the technology company moving ownership of its intellectual property to Luxembourg in 2010.
Agnico Eagle Mines Ltd. tumbled 7.1 percent and Sherritt International Corp. lost 10 percent as gold fell, headed for its largest monthly decline in two years. Bullion for December delivery dropped 0.4 percent in New York.
OceanaGold Corp. slumped 19 percent after the company agreed to buy Romarco Minerals Inc. in a share deal worth C$856 million. Romarco soared 34 percent.