- Silver price jumps to 10-month high to enter bull market
- Rogers slips after first quarter earnings trails estimates
Canadian stocks gained a second day, extending a five-month high, as raw-materials producers rallied with silver entering a bull market and gold advancing a third day.
The benchmark Standard & Poor’s/TSX Composite Index equity gauge added 1.1 percent to 13,867.28 at 4 p.m. in Toronto, the highest level since Oct. 23. The benchmark gauge remains one of the best-performing developed markets in the world this year with a 6.6 percent gain. Trading volume was about 8 percent higher than the 30-day average.
Silver Wheaton Corp. and First Majestic Silver Corp. jumped at least 7.9 percent as resource shares led gains out of 10 industries in the S&P/TSX. All but seven stocks in the 45-member group advanced with gold and copper producers also gaining.
Silver futures for May delivery gained 4.4 percent in New York to settle at $16.972 an ounce, a more-than 20 percent gain from the most recent low in December to meet the common definition of a bull market. Gold for June delivery rose 1.4 percent, while copper on the London Metal Exchange rose a second day to a three-week high.
All but one energy stock in the S&P/TSX increased. Crude in New York rose for the first time in five days, climbing 3.3 percent in New York. The labor stoppage in Kuwait that initially slashed daily output by as much as 1.7 million barrels entered a third day, offsetting earlier concern after OPEC members were unable to come to an accord on a possible production freeze. Crescent Point Energy Corp. was among the biggest gainers in the group, rallying 10 percent.
The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, as a rebound in producers has fueled a 17 percent recovery for the S&P/TSX from a low on Jan. 20. The Canadian benchmark now trades at 22.1 times earnings, about 15 percent higher than the 19.2 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.
Gluskin Sheff & Associates Inc. added 4.1 percent to a three-day rally after Scotia Capital analyst Phil Hardie boosted his rating for the stock to sector outperform, or the equivalent of a buy. The stock, which is still down 11 percent this year, looks oversold relative to its value, Hardie said in the note.
Telecommunications stocks lost 0.7 percent led by Rogers Communications Inc. The cellphone, Internet and TV services provider slipped 1.9 percent after posting first-quarter earnings short of analysts’ estimates.