- Valeant, Concordia rebound as health-care snaps 4-day slide
- Materials producers pare biggest quarterly drop since 2008
Canada stocks rose a second day as markets around the world rebounded to pare losses in the worst quarter for equities since 2011.
Canadian shares added 2.1 percent, led by gains among banks and health-care companies. Drugmakers Valeant Pharmaceuticals International Inc. and Concordia Healthcare Corp. snapped a four-day slide sparked by greater scrutiny on drug pricing.
Global equities have tumbled in the third quarter amid rising concern that a slowdown in Chinese growth will spread to economies around the world at the same time that the U.S. central bank is considering raising interest rates. Commodities have been hardest hit as China is the world’s leading consumer. Stocks ended the quarter with a rally as some of the period’s biggest tumblers found favor.
The Standard & Poor’s/TSX Composite Index rose 270 points to 13,306.96 at 4 p.m. in Toronto, the most in two weeks, after slumping to an October 2013 low Monday. The gauge has declined 4 percent in September. It’s down 8.6 percent in the quarter that ended Wednesday and has tumbled 14 percent from an April peak.
Canada’s economy grew 0.3 percent in July, ahead of median analysts’ estimates for a 0.2 percent increase. The world’s 11th largest economy is poised to rebound this quarter after contracting in the first half, weakened by a drop in commodity prices, Bank of Canada Governor Stephen Poloz predicts. Auto-parts manufacturers Magna International Inc. and Linamar Corp. jumped at least 3.7 percent to lead consumer discretionary stocks higher.
The Bloomberg Commodity Index, which tracks a basket of prices from live cattle to gold, added 0.3 percent for a second day of gains. The gauge has plunged 14 percent this quarter. Copper climbed as much as 4.5 percent to cut the biggest quarterly slump in four years. First Quantum Minerals Ltd. climbed 5.2 percent to pare its drop in the three months to 70 percent.
Canadian equities are among the worst-performing markets in the developed world this year with a 9.1 percent slide, led by declines among raw-materials and energy producers of at least 24 percent.