Canadian Stocks Rise as Financials, Valeant Offset Energy SlumpEric Lam and Lu Wang
Canadian stocks rose, paring a weekly loss, as gains in gold-mining companies, financial shares and Valeant Pharmaceuticals International Inc. offset declines in energy producers.
Valeant climbed 3.8 percent as its takeover target, Galenika AD, reported a narrower loss. Banro Corp. and OceanaGold Corp. jumped at least 8.1 percent as gold rebounded from its biggest slump in 30 years. Turquoise Hill Resources Ltd. surged 9.2 percent after Mongolia’s parliament eased foreign-investment restrictions. TransForce Inc. slipped 2.5 percent after reporting first-quarter sales that missed analysts’ expectations.
The Standard & Poor’s/TSX Composite Index rose 69.21 points, or 0.6 percent, to 12,065.55 at 4 p.m. in Toronto. The benchmark equity gauge fell 2.2 percent this week and has lost 5.4 percent in April.
“Gold had gotten so oversold that a bounce would be completely natural and predictable,” Jamie Robertson, chief investment officer with McLean & Partners Wealth Management Ltd., said on the phone in Calgary. The firm manages about C$1 billion ($974 million). “The financials are starting to reassert themselves.”
Gold for June delivery climbed 0.2 percent to settle at $1,395.60 an ounce in New York. The metal surged earlier in the day to $1,424.70 on signs that jewelers and other users of the metal are taking advantage of the biggest slump in prices since 1980. Banro soared 11 percent to C$1.17 and OceanaGold jumped 8.1 percent to C$2.
Nine out of the 10 industries in the S&P/TSX advanced, paced by a 3 percent gain among health-care companies. Energy shares slid 0.4 percent. Trading volume was 12 percent lower than the 30-day average.
Financial shares increased 0.6 percent as a group. Manulife Financial Corp. rose 1.8 percent to C$14.24, paring its loss for the week. Sun Life Financial Inc. added 1.3 percent to C$27.11.
Valeant, Canada’s largest publicly traded pharmaceutical company, climbed 3.8 percent to C$77.54, its highest close since April 2002. Galenika, Serbia’s state-run drugmaker, said its net loss narrowed by 58 percent in 2012 from a year earlier. Serbia’s government this month picked a unit of Valeant as the only potential bidder for Galenika among five interested companies in a tender. Valeant Pharmaceuticals North America LLC has until April 30 to submit an offer.
Turquoise Hill jumped 9.2 percent to C$5.82 after Mongolia’s parliament removed the need to review investments by non-state-owned companies. Turquoise Hill and its parent, Rio Tinto Group, are developing the Oyu Tolgoi copper and gold project in the country, which has faced delays due to disputes between the miners and the government.
Lundin Mining Corp. lost 0.5 percent to C$3.87. Copper for delivery in three months fell 1.4 percent to $6,990 a metric ton on the London Metal Exchange. That marked a drop of more than 20 percent from the February 2012 closing high, a common definition of a bear market.
Capstone Mining Corp., which owns copper mines in Mexico and northern Canada, declined 2.6 percent to C$1.90. The company is considering about $500 million in acquisitions and has looked at as many as eight mines in the past six months, Chief Executive Officer Darren Pylot said today in a telephone interview with Bloomberg News.
TransForce slipped 2.5 percent to C$19.50, the lowest level since December. The company reported revenue of C$749.7 million, compared with the average estimate of C$785.8 million expected by six analysts surveyed by Bloomberg. TransForce said it doesn’t expect business to improve for the rest of the year.