Canada Stocks Rise as Commodities Producers Pare Monthly Losses

  • S&P/TSX drops 0.4% for sixth monthly loss in past seven
  • New York gold futures pare 10 percent drop this year

Canada stocks rose, trimming their sixth monthly loss in seven, as commodities producers advanced with gold increasing for the first time in three sessions and the nation’s largest banks rose ahead of fourth-quarter earnings.

Energy stocks advanced 1.3 percent, recovering from an Oct. 2 low, while raw-materials producers increased 2.4 percent to lead equities higher. Gold futures for February delivery gained 0.9 percent in New York, the first advance since Nov. 24.

Crude futures settled little changed after rallying as much as 2 percent in New York, capping an 11 percent drop in November. Iran expects no major decisions that would change OPEC’s output target when the group gathers Dec. 4 in Vienna.

A combination of slowing economic growth in China and a rally in the U.S. dollar due to impending interest-rate increases from the Federal Reserve as soon as December have crimped commodities prices, leading energy and raw-materials producers lower for the year. The two groups, which account for about 30 percent of the index, lost more than 1.2 percent in November to extend declines in 2015 past 20 percent.

The Standard & Poor’s/TSX Composite Index rose 101.59 points, or 0.8 percent, to 13,469.83 at 4 p.m. in Toronto. The benchmark equity gauge retreated 0.4 percent in November. It has dropped 8 percent this year, trailed only by Singapore and Greece among developed markets. 

Canada’s current account deficit narrowed to C$16.2 billion in the third quarter, the smallest this year, as merchandise exports jumped. Canada’s weaker dollar, constrained by the drop in oil prices, has given a lift to exporters. The loonie, as the currency is known, has dropped 13 percent this year.

Royal Bank of Canada increased 1.1 percent, the most in two weeks, and Bank of Montreal rose 0.6 percent to lead lenders higher. Bank of Montreal and Bank of Nova Scotia report fourth-quarter earnings tomorrow.

BlackBerrry Ltd. rose 2 percent after the company said it’s shuttering its Pakistan operations to avoid allowing authorities in the nation to monitor its main business enterprise server and e-mail messages. There are as many as 5,000 BES customers in Pakistan, the Dawn newspaper reported in July.

Canadian Oil Sands Ltd. rose 2.8 percent, rebounding from the worst loss in almost two months. Suncor Energy Inc. said Nov. 26 it may scrap its $4.5 billion hostile bid for the company if Alberta regulators endorse a poison pill that would give the target company more time to find other bidders.

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