Canadian Stocks Rise for Third Day as Consumer Shares AdvanceGerrit De Vynck
Canadian stocks rose, after the benchmark index posted its third straight quarterly advance, as health-care and consumer companies led gains.
Longview Oil Corp. added 5.1 percent after Surge Energy Inc. agreed to buy the Calgary-based company. Amaya Gaming Group Inc. dropped 15 percent as fourth-quarter earnings and revenue missed analyst estimates.
The Standard & Poor’s/TSX Index rose 45.24 points, or 0.3 percent, to 14,380.55 at the close in Toronto, gaining for a third straight day. The gauge jumped 5.2 percent in the first quarter, increasing 0.9 percent in March after a 3.8 percent rally in February.
The market is starting to recover after the rally slowed in March, said John Kinsey, a fund manager at Caldwell Securities Ltd. in Toronto. He helps manage about C$1 billion ($907.4 million).
“It looks like it’s starting to claw its way back up again,” he said in a phone interview.
Economic data today showed manufacturing in the U.S. expanded at a faster pace in March as gains in production and orders showed the industry was mending at the close of a winter-depressed first quarter. Growth in euro-area manufacturing stayed close to the highest level in almost three years in March. Manufacturing indexes pointed to weakness in China’s economy as leaders contemplate whether to add stimulus.
Consumer-discretionary stocks led gains among the main industries in the benchmark index, adding 1.3 percent. Six of the 10 groups advanced, with raw-materials companies falling the most.
Longview Oil added 5.1 percent to C$5.77 after Surge Energy agreed to buy the company for C$429 million.
Amaya Gaming dropped 15 percent to C$6.30 after reporting fourth-quarter earnings and sales that fell below analyst predictions.
Kinross Gold Corp. increased 0.4 percent to C$4.59 after it released a new feasibility study for its Tasiast mine expansion project in Mauritania.
“The project has a strong probability of proceeding,” Tony Lesiak, a Toronto-based analyst with Canaccord Genuity Corp., wrote in a note to clients. Lesiak has a buy rating on the stock.
Dynasty Metals & Mining Inc. rose 7.3 percent to C$1.47 after the company said it had started production at its Zaruma gold mine in Ecuador.
Athabasca Minerals Inc. fell 4.5 percent to C$1.71 after reporting lower per-share earnings for the year ended Nov. 30 compared with the previous year.
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