Canada Stocks Gain for Second Day as Gold ReboundsEric Lam
Canadian stocks rose for a second day as gold producers advanced after the metal snapped two days of losses. DHX Media Ltd. surged after agreeing to buy several television channels from BCE Inc.
DHX Media jumped 24 percent after buying Family Channel, Disney XD and other channels from Bell Media, a unit of BCE, for about C$170 million ($161 million) in cash. Detour Gold Corp. climbed 14 percent and Iamgold Corp. rose 2.7 percent. Air Canada, the best-performing stock in the Standard & Poor’s/TSX Composite Index this year, added 2.1 percent for a second day of gains.
The S&P/TSX rose 8.77 points, less than 0.1 percent, to 13,370.83 at 4:33 p.m. in Toronto. The benchmark equity gauge has risen 7.5 percent this year. U.S. markets are closed for the Thanksgiving holiday.
“Gold’s been down the past few days so it’s rebounded a bit today, as the U.S. dollar is down,” said Anish Chopra, a fund manager with TD Asset Management Inc. in Toronto. He helps manage C$216 billion at the firm. “U.S. markets are a real driver of market activity and when they’re closed it’s usually a very quiet day.”
Raw-materials stocks added 0.9 percent as a group as six of 10 industries advanced in the S&P/TSX. Trading volume was 73 percent lower than the 30-day average.
Detour Gold, the worst-performing stock in the S&P/TSX this year, jumped 14 percent to C$4.13, the most since July. Detour has slumped 83 percent this year.
Iamgold advanced 2.7 percent to C$4.53 as gold for immediate delivery increased 0.5 percent at 4:55 p.m. in London.
Teck Resources Ltd., Canada’s largest diversified miner by market value, gained 2.8 percent to C$25.95 and First Quantum Minerals Ltd. rallied 3.8 percent to C$17.93 to break four days of losses as global copper inventories declined for a 19th session to 429,200 tons.
DHX Media, the Halifax-based TV and movie programming producer, surged 24 percent to a record high of C$5.19 after agreeing to buy channels from BCE.
The company plans to pay using a combination of debt and cash on hand, and projects the deal to close in 2014 pending regulatory approval.
The channels will “greatly expand the scale of our business,” Dana Landry, chief financial officer at DHX, said in a statement. The channels would have increased DHX’s revenue by more than 70 percent in the past 12 months, Landry said.
Alimentation Couche-Tard Inc., the convenience store and gas bar operator, rose 1.5 percent to C$77.96 to extend a record high and pace gains among consumer staples stocks.
Couche-Tard has jumped 6 percent in the past five days. The Laval, Quebec-based company reported better-than-forecast second-quarter adjusted earnings and raised its quarterly dividend on Nov. 26.
Output in Canada probably grew at an annualized pace of 2.4 percent in the third quarter, its fastest pace in two years, according to the median estimate of economists surveyed by Bloomberg. Statistics Canada will release quarterly and monthly GDP figures tomorrow at 8:30 a.m. in Ottawa.
Air Canada, the nation’s largest airline, increased 2.1 percent to C$7.15 to extend a five-year high. The stock has soared 309 percent this year.