Canadian Stocks Rise a Fourth Day as Gold, Oil Producers Rally

Canadian stocks rose a fourth day, extending a two-year high, as raw-material producers rallied with higher commodity prices on better-than-projected U.S. housing data.

Torex Gold Resources Inc. and Kinross Gold Corp. gained at least 7.4 percent as gold erased a weekly loss. Pengrowth Energy Corp. rallied 6.4 percent as oil rose to a two-week high. Copper Mountain Mining Corp. added 4.8 percent as copper rose in New York.

The Standard & Poor’s/TSX Composite Index rose 56.63 points, or 0.4 percent, to 13,888.21 at 4 p.m. in Toronto. The benchmark equity gauge has gained 2 percent this year.

“The TSX is based on gold, and gold is popping today,” said Kevin Headland, a fund manager with Manulife Asset Management Ltd., on the phone from Toronto. The firm manages about C$265 billion ($241.6 billion). “I’m not expecting a crazy rally, but it seems we’re turning a corner.”

Raw-materials stocks rose 1.7 percent as a group, the most in the S&P/TSX, as seven of 10 industries advanced. Trading volume was 30 percent above the 30-day average. Of the top 10 advancers in the benchmark equity gauge today, eight were mining stocks including six gold producers.

U.S. industrial production rose for a fifth month in December, capping the strongest quarter since 2010 and indicating manufacturing is helping propel the economy. Output at factories, mines and utilities climbed 0.3 percent after a revised 1 percent increase in November, figures from the Federal Reserve showed today in Washington.

Housing Data

The pace of U.S. home construction dropped less than forecast in December. Housing starts fell 9.8 percent to a 999,000 annualized rate following November’s revised 1.11 million pace, which was the highest since November 2007, the Commerce Department reported today in Washington. The median estimate of 83 economists surveyed by Bloomberg called for 985,000.

Torex Gold jumped 10 percent to C$1.30 and B2Gold Corp. rallied 8.3 percent to C$2.74. Kinross Gold rose 7.4 percent to C$5.22 as the price of gold climbed 0.9 percent to settle at $1,251.90. The S&P/TSX Gold Index gained 4.1 percent, closing at the highest level in more than two months.

Gold gained 0.4 percent this week for a fourth straight advance, the longest weekly streak of gains since August.

Gold traders and analysts are bullish on speculation physical demand will increase. The U.S. Mint has sold 69,000 ounces of American Eagle gold coins in January, compared with 56,000 ounces for all of December and the most since 70,000 ounces sold in May, according to data from the Mint.

Market Movers

Silver Standard Resources Inc. advanced 5.5 percent to C$8.97 and Silver Wheaton Corp. rose 2.7 percent to C$24.49 as silver prices rallied 1.2 percent.

Pengrowth Energy added 6.4 percent to C$7.17, the highest close in 16 months, after Aaron Bilkoski, analyst at TD Securities, raised his rating for the stock to buy from hold. Pengrowth has seven buys, nine holds and four sells, data collected by Bloomberg show.

Bankers Petroleum Ltd. climbed 2.7 percent to C$4.61 and Advantage Oil & Gas Ltd. rose 3.5 percent to C$4.76. Crude for February delivery rose 0.4 percent to $94.37 in New York, the most in two weeks.

Copper Mountain Mining rose 4.8 percent to C$1.75. Copper posted a 0.5 percent weekly increase, the first in three weeks, on speculation demand will increase as the U.S. economy recovers.

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