- Banks rise after slumping five days, mirroring global rally
- Oil prices surge from a 12-year low, boosting energy stocks
Canadian stocks rose for the first time in six days, as a rally in energy and financial shares pushed the benchmark gauge to its best rally in three weeks amid surging oil prices and easing concerns about the global economy.
The Standard & Poor’s/TSX Composite Index gained 293.97 points, or 2.4 percent, to 12,381.24 at 4 p.m. in Toronto, as all 10 main industry groups advanced. The index had tumbled 5.4 percent in the prior five days, pushing it to its lowest level in three weeks. Friday’s rally trimmed its decline in the week to 3 percent.
The index joined a rally in equities worldwide, as U.S. stocks advanced after a report showed the country’s retail sales increased for a third straight month in January and banks from Europe to America rallied amid speculation a selloff in financial shares had gone too far too fast.
Canadian lenders, which have been the biggest source of pain in the market’s latest rout, jumped 3.4 percent, the most since November 2011. Royal Bank of Canada jumped 3 percent, while Toronto-Dominion Bank gained 1.8 percent.
Great-West Lifeco Inc. added as much as 2.9 percent, the biggest gain since November. The company topped Manulife Financial Corp. as the nation’s largest life-insurance stock by market value.
Brookfield Asset Management Inc. rallied 4.5 percent. Canada’s largest alternative asset manager said funds from operations grew 83 percent during the quarter from a year ago, while also saying net income fell 30 percent.
West Texas Intermediate, the U.S. benchmark for crude, jumped 12 percent to more than $29 a barrel after hitting a 12-year low yesterday. Producers are ready to work together and won’t make cuts unless there is complete cooperation, United Arab Emirates Oil Minister Suhail Al Mazrouei said on a Sky News Arabia report posted online Feb. 10.
Canadian energy companies benefited from the recovery in oil. Penn West Petroleum Ltd. and Enerplus Corp. rose more than 6 percent as producers gained 2.8 percent as a group.
Bombardier Inc. jumped 3.9 percent after the troubled aircraft maker won a contract with Alberta Transit valued at about C$391 million.
Health-care stocks also surged, advancing 5 percent, the most among all sectors. Valeant Pharmaceuticals International gained 6.33 percent, while Concordia Healthcare Corp. went up 2.8 percent.