- Oil futures top $45 a barrel in New York ahead of OPEC talks
- S&P/TSX joins global rally as U.S. stocks cap fresh record
Canadian stocks rose, closing near the highest level in a year, as energy producers advanced for a third session amid speculation crude prices will continue to rebound and Valeant Pharmaceuticals International Inc. jumped after an analyst upgrade.
The S&P/TSX Composite Index added 0.2 percent to 14,777.02 at 4 p.m. in Toronto, after earlier gaining as much as 0.4 percent to touch the highest level on a closing basis since June 2015. Trading volume was 20 percent lower than the 30-day average. The S&P/TSX is the second-best performing developed market in the world this year, just behind New Zealand.
Cenovus Energy Inc. and Crescent Point Energy Corp. added at least 2 percent as oil and gas producers increased 0.8 percent as a group, pacing gains in the S&P/TSX. Six of 10 industries in the Canadian equity benchmark advanced. The S&P/TSX Energy Index has rallied 2 percent in three sessions, to the highest in more than a year.
Crude futures climbed 2.8 percent to the highest in four weeks, topping $45 a barrel in New York, amid speculation producers will revive talks to stabilize prices. Crude climbed 6.4 percent last week as Saudi Arabia signaled it’s prepared to discuss stabilizing markets at informal OPEC discussions next month. Russia is also reportedly open to talks for a joint output freeze.
In Canada, the rebound this year continues to be led by mining and materials companies, the top gainers this year among 10 industries in the S&P/TSX with a 63 percent advance, the best year-to-date performance for the category in at least 30 years according to data compiled by Bloomberg.
That’s boosted the Canadian equity benchmark to a 14 percent jump in 2016, rebounding from a slump last year that was the worst for the S&P/TSX since the 2008 financial crisis. The rally has made Canadian stocks more expensive than their U.S. peers, with a price-earnings ratio of 23.6 for the S&P/TSX, about 15 percent higher than the S&P 500 Index.
Canadian equities are joining a global rally, with a gauge of world developed and developing markets trading at the highest in a year on speculation uneven economic growth will mean more monetary stimulus from the world’s central banks, extending gains after a brief dip following the surprise U.K. Brexit vote in June. The S&P 500 rose in New York, posting a fresh record after capping on Friday a sixth weekly advance in seven.
Valeant buoyed health-care shares after analysts at Mizuho Securities raised their rating on the stock to neutral from sell. The shares jumped 6.6 percent.
Struggling drugmaker Concordia International Corp. fell 6 percent, extending losses to a third day after plummeting the most in more than three years on Aug. 12. A smaller peer of Valeant, Concordia slashed its 2016 forecast, suspended its dividend and announced the departure of a key executive amid disappointing second-quarter results.