- Fifty-three of 55 energy companies advance as oil rises
- Nine main groups climb as S&P/TSX pares January loss
Canadian stocks continued to mirror prices of commodities, rallying to trim the equity benchmark’s worst monthly decline since 2012, as resources from crude to copper rebounded.
The Standard & Poor’s/TSX Index added 1.6 percent to 12,331.32 at 4 p.m. in Toronto, following a 2 percent decline on Monday. Nine of the index’s 10 main industries climbed. The S&P/TSX, which entered a bear market earlier this year, has fallen 5.2 percent this month.
Health-care shares advanced the most in the index, climbing 4.5 percent on gains of at least 3.3 percent in Concordia Healthcare Corp. and Valeant Pharmaceuticals International Inc. The group of five stocks is down 2.9 percent on the year.
Concern that China’s government won’t be able to stop the world’s second-largest economy from slowing has sent commodities prices tumbling. That’s pushed Canada’s resource-heavy equities market into a bear market as the nation’s economy suffered from waning demand for minerals and oil. Commodities advanced Tuesday on speculation the U.S. economy will continue to grow and that central banks are prepared to step up stimulus if warranted.
Energy stocks in the S&P/TSX increased, as all but two companies in the 55-member index rose. Pengrowth Energy Corp. and Birchcliff Energy Ltd. led gains, jumping more than 15 percent. West Texas Intermediate crude climbed after Iraq’s oil minister said at a conference in Kuwait that Saudi Arabia and Russia are now more flexible about cooperating to cut output.
Raw-materials producers jumped 2.1 percent as a Bloomberg index of commodities added 1.4 percent. Forty of the 46 commodity companies in the S&P/TSX advanced today as gold and copper rose.
Canadian National Railway jumped 1.6 percent after reporting fourth-quarter earnings per share that beat analyst estimates, even as revenue missed. Earnings were C$1.18 in the fourth quarter, compared with the average estimate of $1.11.