Canada Stocks Rise, Post Best Year Since ’10; Gold ClimbsEric Lam
Canadian stocks rose, sending the benchmark index to its best performance since 2010, as commodities producers rallied.
OceanaGold Corp. jumped 9.3 percent and Goldcorp Inc. climbed 3.6 percent as the price of the precious metal reversed early declines. Athabasca Oil Corp. gained 2.4 percent to pace gains among energy stocks. First Majestic Silver Corp. advanced 3.8 percent.
The Standard & Poor’s/TSX Composite Index rose 40.16 points, or 0.3 percent, to 13,621.55 at 4 p.m. in Toronto, for the highest close since May 2011. Trading was 54 percent below the 30-day average at this time of day.
“It’s been a great year for equities, for the U.S. and globally,” said Paul Harris, fund manager with Avenue Investment Management in Toronto. The firm manages about C$300 million ($282.4 million). “Canada has lagged a bit but it’s par for the course as commodities have lagged. I’m positive generally for the stock market next year.”
The S&P/TSX rose 9.6 percent this year, for its largest annual gain in three years. That’s still the fourth-worst performance among developed markets, ahead of Austria, Hong Kong and Singapore. The S&P 500, the U.S. equities benchmark, added 30 percent.
The Canadian benchmark rallied 1.7 percent in December, its sixth straight monthly advance, the longest streak since February 2011.
Six of 10 main groups in the gauge advanced today, led by a 1.4 percent gain among producers of raw materials. The S&P/TSX Raw Materials Index has been the worst performer in the gauge this year, dropping 31 percent.
OceanaGold surged 9.3 percent to C$1.64 and Goldcorp rallied 3.6 percent to C$23.04 as the price of gold rebounded from a six-month low today.
Eight of the 10 worst-performing stocks in the S&P/TSX in 2013 were gold miners. Detour Gold Corp. fell 84 percent and Iamgold Corp. lost 69 percent to lead declines.
The S&P/TSX Gold Index of gold miners gained 2.6 percent today, trimming its decline in 2013 to 45 percent. The price of gold fell 28 percent this year, the most in three decades.
First Majestic Silver increased 3.8 percent to C$10.43 as silver prices fell. The metal posted its biggest annual drop since 1981.
Athabasca Oil gained 2.4 percent to C$6.48 and Canadian Natural Resources Ltd. rose 1 percent to C$35.94. Crude prices in New York rose 7.2 percent in 2013.
Air Canada gained the most for the year, adding 323 percent.