- All 10 Canadian industries climb as banks, commodities gain
- First Quantum surges 23% as copper rallies most in 2 years
Canadian stocks advanced, rebounding from last week’s slide, as signs of stability in China sparked a rally in global equities and commodities.
Canada’s benchmark index jumped 1.1 percent, led by industrial and raw-material shares. All 10 major industries advanced, with financial companies adding 1.3 percent. Railway companies surged, as Canadian National Railway Co. rose 2.7 percent after TD Securities raised the stock to a buy.
The Standard & Poor’s/TSX Composite Index rose 152.36 points to 13,630.67 at 4 p.m. in Toronto. The equity gauge rebounded from a 2.8 percent slide last week, and pared its drop this year to 6.9 percent. Canadian equity markets were closed Monday for the Labor Day holiday.
Canadian shares followed global markets higher today. A gauge of developed and developing equity markets increased 1.8 percent as the S&P 500 jumped 2.5 percent in New York. Brent crude rebounded from a one-week low and copper jumped the most in two years.
Global shares are rebounding from the worst month since May 2012, as the MSCI World All-Country World Index tumbled 7 percent in August after Chinese stocks slumped amid increasing concern economic growth in the country was stalling.
The resource-rich S&P/TSX has been one of the worst-performing developed markets in the world this year as crude plunged. Energy and raw-materials producers have the biggest declines among 10 industries in the S&P/TSX this year.
The Shanghai Composite Index climbed 2.9 percent at the close today for the first increase in five days, on speculation state-backed funds bought shares after data showed signs of a weakening economy. Exports from China, Canada’s second-largest trading partner, declined in August.
First Quantum Minerals Ltd. surged 23 percent and Teck Resources Ltd. increased 5.8 percent today. Copper jumped 5.3 percent in New York after China reported higher imports of the metal. China, the biggest user of copper, said imports soared 19 percent in August from the previous month.
Royal Bank of Canada and Toronto-Dominion Bank increased more than 1.8 percent to lead the advance in financial-services stocks.
Concordia Healthcare Corp. lost 11 percent after agreeing to buy drugmaker Amdipharm Mercury Ltd. for about $3.5 billion in cash, shares and a deferred payment. Concordia, along with its much larger competitor Valeant Pharmaceuticals International Inc., are two of the best-performing stocks in the S&P/TSX this year, driven by a spree of acquisitions.
Penn West Petroleum Ltd. dropped 7.1 percent, for a third day of losses, after the company said it received a notification from the New York Stock Exchange the company’s listing was no longer in compliance as its average close price was less than $1 over a consecutive 30-trading-day period.