Canadian Stocks Rise as Commodities Gain on China Export Data

Canadian stocks rose for a third day as resource companies advanced after China’s exports jumped more than forecast last month.

Canadian Natural Resources Ltd. and Suncor Energy Inc. added at least 0.9 percent as crude rose to a three-month high. Yamana Gold Inc. gained 5.8 percent as gold rose the most in two months. First Quantum Minerals Ltd. added 2.2 percent after Leucadia National Corp., the top shareholder of Inmet Mining Corp., said it plans to tender its shares to First Quantum’s hostile C$5.1 billion ($5.2 billion) bid for the copper mining company.

The Standard & Poor’s/TSX Composite Index rose 77.5 points, or 0.6 percent, to 12,599.74 in Toronto. The benchmark gauge has gained 1.3 percent this year.

“The market today is moving primarily on the Chinese data, so gold is up and crude is up which is very good for the Canadian market,” said John Kinsey, fund manager with Caldwell Securities Ltd. in Toronto. His firm manages about C$1 billion. “Those are the two areas that have been dragging.”

Materials and energy stocks fell the most among 10 industries in the benchmark Canadian equity gauge in 2012, slumping 6.9 percent and 3.7 percent respectively.

Overseas shipments increased 14.1 percent in November from a year earlier, the most since May, China customs administration data showed today, compared with the 5 percent median forecast in a Bloomberg News survey of 40 economists.

Raw-materials and energy stocks contributed the most to gains in the S&P/TSX today as nine of 10 industries advanced. Trading volume was 15 percent higher than the 30-day average at this time of the day.

Yamana, Eldorado

The S&P/TSX Gold subindex rallied 2.5 percent, the most in more than a week, as 25 of 31 members advanced.

Yamana climbed 5.8 percent to C$17.26 and Eldorado Gold Corp. advanced 3.8 percent to C$12.67 as gold futures for February delivery gained 1.4 percent to settle at $1,678 an ounce in New York, the biggest jump for a most-active contract since Nov. 6.

Colossus Minerals Inc. increased 4.1 percent to C$4.87. The company reported drill results that included high-grade gold values near the surface in the Elefante area in Brazil.

First Quantum added 2.2 percent to C$21.05. Leucadia, which owns about 16 percent of Inmet, said it will tender its shares into First Quantum’s C$72-a-share hostile offer unless a better deal emerges.

Suncor gained 0.9 percent to C$33.58 and Canadian Natural Resources Ltd. added 1.8 percent to C$29.69. Crude for February delivery increased 0.8 percent to $93.82 a barrel in New York, the highest settlement since Sept. 18.

Karnalyte Resources Inc., a potash mining company based in Okotoks, Alberta, jumped 6.1 percent to C$8.49 after announcing Gujarat State Fertilizers & Chemicals Ltd. will buy a 20 percent stake in the company for C$45 million.

The publicly-traded Indian agribusiness company has also agreed to a 20-year deal for potash from Karnalyte’s Wynyard project in Saskatchewan.

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