Canada Stocks Advance on Corporate Earnings; Suncor FallsSarah Pringle
Canadian stocks advanced as earnings from companies including TMX Group Ltd. and Genworth MI Financial Inc. offset a slump in Suncor Energy Inc. after it posted disappointing results.
TMX, the owner of the Toronto Stock Exchange, and Genworth rose at least 2.3 percent after beating analysts’ earnings estimates. Raw-material shares rallied as Silver Wheaton Corp. climbed 1.4 percent after agreeing to buy gold from Vale SA mines in Brazil and Canada. Suncor Energy, Canada’s largest energy company by market value, dropped 5.4 percent for the worst performance in the benchmark index, after reporting the biggest loss in at least two decades.
The Standard & Poor’s/TSX Composite Index added 15.94 points, or 0.1 percent, to 12,761.59 at 4 p.m. in Toronto. Seven of 10 industries advanced. About 738 million shares traded hands on Canadian exchanges today, or 3 percent below the three-month average. The benchmark gauge has gained 2.6 percent this year.
“Earnings season in Canada is just starting to ramp up,” Jeffrey Bradacs, who helps oversee about C$1.5 billion ($1.5 billion) as a fund manager with Toronto-based Manulife Asset Management Ltd., said in a phone interview. “That will be the key catalyst now going forward.”
Financial shares contributed most to gains in the benchmark index, as Royal Bank of Canada rose 1 percent to C$62.67, reaching a record high.
TMX Group rallied 2.3 percent to C$56.73. The company benefited from an increase in revenue from its trading, clearing and depository business, after adding contributions from the Canadian Depository for Securities Ltd. clearinghouse and Alpha Group. The businesses were acquired as part of TMX’s C$3.73 billion takeover in September by a group of banks and pension funds.
Genworth, a residential mortgage insurance provider, advanced 4 percent to C$24.63, the most in four months. The company, based in Oakville, Ontario, reported a surge in new business and a drop in its loan loss ratio that led to better-than-expected earnings.
Silver Wheaton, which resells precious metals bought from mining companies, rose 44 Canadian cents to C$36.57. The Vancouver-based company agreed to acquire gold mined by Vale in Brazil and Canada for $1.9 billion in cash and 10 million share warrants. Silver Wheaton typically offers upfront payments to help mining companies fund their projects in exchange for a discount on the silver and gold output that it buys.
Energy producers had the worst performance among S&P/TSX groups, slipping 0.5 percent.
Suncor, the oil-sands producer, slumped C$1.85 to C$32.53, the biggest decline since June. The Calgary-based company reported its first quarterly loss in 3 1/2 years. Suncor’s results were hurt by a charge of C$1.49 billion related to its Voyageur oil project in the province of Alberta, which may face cancellation. The company also said late yesterday in a statement it faces a possible C$1.2 billion tax bill.
Husky Energy Inc., the Canadian oil company controlled by Asia’s richest man, Li Ka-shing, fell 1 percent to C$31.06. The Calgary-based company reported fourth-quarter profit and sales that missed analysts’ estimates on lower-than-expected refining margins.