- S&P/TSX rebounds after hitting 2 1/2 year low on Monday
- Progressive Waste Solutions jumps on news of acquisition
Canadian stocks rose for only the third time this year, as Chinese growth data eased investor concern over a hard landing in the world’s second-largest economy a day before the central bank makes its interest-rate decision.
Seven of the 10 main industries advanced, as the Standard & Poor’s/TSX Index gained 0.5 percent to close at 12,002.24 at 4:00 p.m. in Toronto. The gauge rebounded after slumping 1.1 percent yesterday when it fell to the lowest since June 2013. The index, which entered a bear market almost two weeks ago, has tumbled 7.8 percent year-to-date.
More than half the market has put its money on the Bank of Canada cutting its benchmark interest rate back to a record low of 0.25 percent on Wednesday, as oil’s relentless collapse shows no signs of abating and weakness has cropped up elsewhere in the economy.
Trading Tuesday was volatile, with the Canadian benchmark erasing early gains before rallying into the close to finish higher. The move mimicked action in global equities, as crude resumed its slump below $29 a barrel. The country’s currency weakened for a 13th straight day against its U.S. peer, falling to the lowest since April 2003.
Canada’s largest consumer companies led Tuesday’s rally, gaining 1.5 percent, with Cogeco Cable Inc. rising 7.1 percent for its biggest advance in seven years. Technology shares increased 1.4 percent. Materials producers fell for a fourth consecutive day, slipping 2.1 percent to the lowest since May 2005 and down 7.9 percent year to date.
Progressive Waste Solutions Ltd. jumped almost 11 percent, the most ever, to a level last seen in April. U.S.-based Waste Connections Inc. agreed to buy Ontario-based Progressive Waste Tuesday, moving the tax domicile for its garbage-hauling business to Canada. Labrador Iron Ore Royalty Corp. gained 15 percent, the most in seven months, after an analyst at Canaccord Genuity raised the stock to buy from hold.
Baytex Energy Corp. tumbled 17 percent, the most ever, to a record low, while Silver Standard Resources Inc. slipped almost 14 percent to the lowest since March. Yamana Gold Inc. fell 8.1 percent, its fourth consecutive day of declines, after Macquarie Research downgraded the stock to neutral from the equivalent of buy. Iamgold Corp. fell 13 percent to the lowest since July after the mining company cut its guidance.