Canadian Stocks Rise as Energy Shares, BlackBerry RallySarah Pringle
Canadian stocks rose, rebounding from yesterday’s retreat, as BlackBerry surged on signs of strong demand for its new phone and energy shares rallied amid a recovery in oil prices.
BlackBerry, formerly known as Research in Motion, jumped 6.3 percent after wireless carrier BCE Inc. said the Z10 smartphone has attracted record orders. Energy producers rallied as oil rebounded 0.5 percent. Condor Petroleum Inc. surged 55 percent after announcing an oil discovery in Kazakhstan. WestJet Airlines Ltd. rose 3 percent as traffic and capacity levels increased in January.
The Standard & Poor’s/TSX Composite Index climbed 28.03 points, or 0.2 percent, to 12,745.65 at 4 p.m. in Toronto. The benchmark gouge dropped 0.4 percent yesterday and has gained 2.5 percent this year. Nine of 10 industries advanced today. About 791 million shares traded hands on Canadian exchanges today, or 4.2 percent above the three-month average.
“Canada is really trading on news that’s happening globally,” Anish Chopra, managing director and portfolio manager at TD Asset Management Inc., said in a phone interview. The Toronto-based firm manages about C$204 billion ($205 billion). “There’s sort of a risk-on tone in Europe that has translated into a risk-on tone here in North America as well. People are just more optimistic.”
Global equities rebounded today after a slump yesterday sparked by renewed concern that Europe’s debt crisis will intensify. Italian, Spanish and Portuguese bonds recovered following losses yesterday. Data today showed service industries shrank less than initially estimated in Europe while growing more than economists forecast in the U.S.
Energy producers contributed the most to gains in the S&P/TSX. Encana Corp., Canada’s largest natural gas producer, climbed 1.7 percent to C$19.37, and Suncor Energy Inc., the Calgary-based oil-sands producer, rose 0.6 percent to C$34.38.
Condor Petroleum surged 23 Canadian cents, the biggest gain since the company went public in April 2011, to 65 Canadian cents. Don Streu, Condor’s chief executive officer, said the company has about three weeks of drilling to go before it can evaluate the size of the discovery at the Kiyaktysai well in the Zharkamys West 1 territory in Kazakhstan.
Tethys Petroleum Ltd., which also has assets in Kazakhstan, jumped 20 percent to 73 Canadian cents, its highest level since September.
West Texas Intermediate crude oil for March delivery rose 47 cents to settle at $96.64 a barrel on the New York Mercantile Exchange.
BlackBerry jumped 95 Canadian cents to C$15.94, extending a two-day rally to 23 percent. BCE, Canada’s No. 2 carrier, said early orders for the Z10 have topped any previous BlackBerry model, while one Carphone Warehouse Group Plc outlet in the U.K., where the phone has been on sale since Jan. 31, sold out of the model in under half an hour, local staff said.
WestJet Airlines rose 66 Canadian cents to C$22.55. The low-fare airline reported a 6.4 percent increase in capacity for January. Its load factor, or percentage of seats filled with paying passengers, climbed to 80.9 percent for a seventh straight monthly record.
Raw material producers had the only decline among 10 S&P/TSX groups. Torex Gold Resources Inc. dropped 3.6 percent to C$1.90, and Silver Standard Resources Inc. slipped 1.7 percent to C$11.79. Gold futures for April delivery fell 0.2 percent to $1,673.50 an ounce on the Comex in New York.
CGX Energy Inc. tumbled 13 percent to 14 Canadian cents. Repsol SA, Spain’s largest oil producer, and Toronto-based CGX plan to re-drill the Jaguar-1 well prospect off the coast of Guyana after abandoning the initial probe in July because of excessive well pressure.