Canadian Stocks Cap Quarterly Gain Amid Faster Economic GrowthGerrit De Vynck
Canadian stocks rose, giving the benchmark index its third straight quarterly advance, as a report showed the nation’s economy grew faster than economists had estimated.
Martinrea International Inc., a maker of automobile parts, climbed 14 percent for the biggest gain in the Standard & Poor’s/TSX Index after saying errors made in previous financial filings were immaterial. BlackBerry Ltd. dropped 3.9 percent as Credit Suisse Group AG recommended selling the shares. Medical-imaging company Nordion Inc. added 11 percent after agreeing to be bought by Sterigenics International Inc.
The S&P/TSX rose 74.59 points, or 0.5 percent, to 14,335.31 at 4 p.m. in Toronto. The gauge gained 5.2 percent for the quarter.
Positive economic numbers will encourage investors that winter weakness was weather related, said Jeff Young, who oversees about C$900 million ($815 million) as chief investment officer of NexGen Financial Corp. in Toronto. “Then you should see more strength into the market.”
Canada’s economy grew by 0.5 percent in January, making up for a 0.5 percent contraction in December, according to Statistics Canada. Bank of Canada Governor Stephen Poloz has said the especially cold winter has held up output. The median forecast in a survey of economists by Bloomberg was for gross domestic product to grow 0.4 percent.
Martinrea rose 14 percent to C$9.97. The stock plunged 21 percent on Dec. 19 after the company said one of its factories had misreported net income over eight years. Chief Executive Officer Nick Orlando will step down and the company is looking for a replacement, according to a press release today.
BlackBerry fell 3.9 percent to C$8.95 for a fifth day of losses. Credit Suisse cut its rating on the stock to underperform, the equivalent of a sell, from neutral. The shares sank 6.6 percent on March 28 after the company said sales won’t grow until the fiscal year that begins next March.
Nordion increased 11 percent to C$12.74. Sterigenics, a biotechnology company owned by private equity firm GTCR LLC, will pay $11.75 a share for the company. It’s not likely that Nordion will get a competing offer from other buyers, Alan Ridgeway, an analyst with Paradigm Capital Inc., wrote in a note to clients.
CGI Group Inc., the Canadian company that lost its contract to build the Obamacare website after a botched rollout, advanced 0.5 percent to C$34.13 after getting permission to run cloud services for the U.S. Department of Defense.
Fortress Paper Ltd. slipped 1.5 percent to C$3.89. The company said it had been given a deferral on a loan payment.