Canada Stocks Rise for 3rd Day as Oil, Gold Shares RallyEric Lam
Canadian stocks rose for a third day, led by gains among metals and energy producers, as gold and crude prices rallied.
Labrador Iron Mines Holdings Ltd. surged 29 percent after agreeing to sell part of a deposit to Tata Steel Ltd. Rubicon Minerals Corp. and Colossus Minerals Inc. added at least 14 percent, as the price of gold capped the longest rally in six months. Petrominerales Ltd. and Talisman Energy Inc. gained more than 1 percent after crude rose for a fourth day. Endeavour Silver Corp. climbed 12 percent as earnings surpassed forecasts.
The Standard & Poor’s/TSX Composite Index increased 20.09 points, or 0.2 percent, to 12,878.58 at 4 p.m. in Toronto. The S&P/TSX has risen 3.6 percent this year and closed today at its highest level since July 2011. Trading volume was 5.7 percent higher than the 30-day average.
“We have a rebound in gold and base metals today that’s helping the market,” said Stephen Gauthier, fund manager with Fin-XO Securities Inc., in Montreal. He helps oversee about C$550 million ($536 million). “I was surprised to see commodity prices rally so strong. No doubt the strength of the U.S. market is having a positive impact.”
The Standard & Poor’s 500 Index fell 0.2 percent today after a seven-day rally left the benchmark U.S. equity gauge within nine points of its record high yesterday. The index has added 8.9 percent this year.
Raw-materials stocks rose the most in the S&P/TSX, adding 1.7 percent as a group. The S&P/TSX Gold index rose 2.6 percent, as gold for April delivery climbed 0.9 percent to settle at $1,591.70 an ounce in New York. Gold rose for a fourth day, the longest streak since Aug. 21.
Colossus Minerals surged 21 percent to C$2.98. Rubicon Minerals jumped 14 percent to C$2.42 after the gold explorer agreed to negotiate with the Wabauskang First Nation on development of Rubicon’s Phoenix Gold project in Ontario. The sides had been headed for a legal showdown.
Teck Resources Ltd., a metals miner, gained 0.9 percent to C$31.62, as copper rose 1.1 percent for a second day of gains. Silver advanced 1.1 percent.
Labrador Iron Mines soared 29 percent to 84 Canadian cents. The iron ore producer agreed to sell a 51 percent interest in its Howse deposit to Tata Steel Minerals Canada for C$30 million. Tata also has an option to increase its stake to 70 percent for C$25 million.
Endeavour Silver jumped 12 percent to C$6.67 after reporting fourth-quarter adjusted earnings that topped analysts’ estimates. The Vancouver-based company also forecast a 14 percent to 22 percent increase in silver equivalent production in 2013.
Talisman Energy rose 1 percent to C$12.56. SMB Offshore NV agreed to pay the Canadian oil and gas producer $470 million to settle a dispute over an oil platform. Petrominerales gained 2.1 percent to C$6.84. Crude for April delivery advanced 0.5 percent to settle at $92.54 a barrel in New York, for a fourth day of gains.