Canada Stocks Rise as Commodity Prices Boost Raw-Material Shares
Canadian stocks rose for a second day as rising gold and energy prices sent resource producers higher.
Canadian Natural Resources Ltd. and Suncor Energy Inc. advanced at least 0.8 percent, as the price of crude rose to a three-week high. Colossus Minerals Inc. and Banro Corp. gained more than 4.5 percent after gold headed for a second weekly rise. Pacific Rubiales (PRE) Energy Corp. dropped 4.2 percent as a Salman Partners Inc. analyst lowered his rating for the stock.
The Standard & Poor’s/TSX Composite Index (SPTSX) rose 42.72 points, or 0.3 percent, to 12,842.63 at 12:34 p.m. in Toronto. The S&P/TSX has risen less than 0.1 percent this week, erasing earlier losses.
“The market today is reflecting higher commodity prices,” said Michael O’Brien, director and fund manager with TD Asset Management Inc. in Toronto. He manages about C$3 billion ($2.94 billion). “Whether it’s natural gas, or oil with the differential narrowing, it’s been helping the gassy and oily names react positively. With gold, maybe we’ve had the point of maximum pessimism so there’s room for gold stocks to recover.”
West Texas Intermediate crude climbed 0.2 percent to $93.22 a barrel, as the dollar weakened and inventories fell at a major storage hub. The U.S. benchmark was on track to settle at its highest since Feb. 20. Natural gas jumped to a 16-week high, heading for a fourth straight weekly gain, on speculation that a late cold blast will boost heating demand.
Energy shares rose the most in the S&P/TSX, advancing 0.9 percent as a group. Six of 10 groups in the benchmark index advanced. Trading volume was 18 percent higher than the 30-day average at this time of the day.
Suncor Energy added 1.3 percent to C$31.91 and Canadian Natural Resources increased 0.8 percent C$33.53.
Encana Corp. (ECA), the nation’s largest natural gas producer, rose 1.7 percent to C$20.78. Crew Energy Inc., an oil and natural gas company, increased 7.4 percent to C$6.99.
Colossus Minerals jumped 12 percent to C$3.25 and Banro climbed 4.5 percent to C$2.10. Gold rose 0.1 percent to $1,592.10 an ounce in New York. The metal has added 1 percent this week, with demand rising as a hedge against inflation.
Pacific Rubiales lost 4.2 percent C$22.42 after Justin Anderson, analyst with Salman Partners, lowered the stock’s rating to hold from buy and decreased his price target to C$25 from C$32.
Latin America’s largest non-state oil producer by market capitalization yesterday reported adjusted earnings of 13 cents a share, lower than the 60 cents expected from seven analysts surveyed by Bloomberg.
To contact the reporter on this story: Eric Lam in Toronto at firstname.lastname@example.org
To contact the editor responsible for this story: Lynn Thomasson at email@example.com