- WTI jumps on report of Saudi Arabia-Russia output freeze
- Bombardier climbs after winning more C Series jet orders
Canadian stocks posted its biggest three-day rally in a month, as crude topped $42 a barrel and Bombardier Inc. climbed on more orders for its C Series jet aircraft.
The Standard & Poor’s/TSX Composite Index rose 1.2 percent to 13,581.42 at 4 p.m. in Toronto, extending a three-day winning streak to 2.4 percent. The S&P/TSX remains one of the best-performing developed markets in the world this year with a 4.4 percent gain.
Canadian equities advanced with commodities prices on Tuesday, as crude jumped after Interfax reported Russia and Saudi Arabia reached a consensus on freezing oil output. Gold held near a three-week high, buoyed by a falling dollar that’s trading near a June 2015 low.
The resource-dominant S&P/TSX remains tied to commodities prices, as crude and gold prices have found some footing in the second quarter after stumbling at the beginning of April. Energy producers added 3.5 percent today, the biggest gain in the S&P/TSX as eight of 10 industries advanced on trading volume 10 percent higher than the one-month average. Encana Corp. surged 9.3 percent while Cenovus Energy Inc. and Crescent Point Energy Corp. rallied more than 7.4 percent.
Enerplus Corp. jumped 9.7 percent to the highest close this year, after the oil and gas producer sold non-core assets in Northwest Alberta Monday worth about C$95.5 million.
Raw-material producers have been the top-performing industry in Canada this year, rallying 29 percent. Gold prices have soared 18 percent as investors scaled back projections for U.S. rate increases. The Canadian benchmark now trades at 21.6 times earnings, about 15 percent higher than the 18.8 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.
Bombardier added 5.5 percent, after three straight days of no change. The struggling aerospace manufacturer said Latvia’s flag carrier airBaltic converted its remaining seven option aircraft to a firm order. This latest order brings the Latvian carrier’s total firm orders to 20 CS300 aircraft.
The C Series is “critical” to the survival of Bombardier’s aircraft business, George Ferguson, an industry analyst with Bloomberg Intelligence, said in a note. Ferguson estimates Bombardier needs more than 1,000 C Series orders for success.