Canada Stocks Advance as Suncor, Oil Prices Boost Energy SharesGerrit De Vynck
Canadian stocks rose, led by oil companies as Suncor Energy Inc. rallied on earnings and crude prices increased.
Suncor added 3 percent after reporting record earnings. Cameco Corp., which mines uranium, fell 3.6 percent after first-quarter profit missed analyst estimates. Encana Corp. rose 2.5 percent after the oil company said it would sell some of its Texas properties for $530 million.
The Standard & Poor’s/TSX Index rose 52.20 points, or 0.4 percent, to 14,583.11 at 4 p.m. in Toronto. The gauge is up 1.7 percent for the month, and is trading at the highest level since 2008.
“There’s no doubt there’s a geopolitical risk premium in place in driving oil and gas on some of the supply disruption concerns, but I think that is on the back of a fundamental improvement in the global economy,” said Stephen Lingard, managing director and portfolio manager at Franklin Templeton Solutions in Toronto. He helps manage C$8.5 billion ($7.75 billion).
Energy companies climbed 1.3 percent as a group today, extending a yearly gain to 15 percent. West Texas Intermediate advanced 0.4 percent and Brent crude rose 0.8 percent.
Oil strengthened after the U.S. and European Union imposed additional sanctions against Russia yesterday, while Libya suspended a vote on the country’s premiership after gunmen opened fire in parliament today.
Suncor, Canada’s largest oil company by market value, rose 3 percent to C$42.60. The Calgary-based producer said first-quarter profit rose, helped by higher crude prices and shipments of North American oil to the Gulf and Atlantic coasts.
Cameco fell 3.6 percent to C$23.27. The uranium miner said its McClean Lake mill will not be processing ore in the second quarter as the company reported first-quarter adjusted earnings that fell short of estimates.
Encana rose 2.5 percent to C$25.68. The oil and gas producer is selling some of its Texas properties to an undisclosed buyer as part of its plan to get value out of its “massive” set of assets, Chief Executive Officer Doug Suttles said in a statement.
AutoCanada Inc. rose 5.7 percent to C$65.44 after the car seller signed a purchase agreement for eight dealerships.
Quebecor Inc. fell 2.3 percent to C$26. The telecommunications company said its chief executive officer Robert Depatie was stepping down for health reasons.
Canadian Pacific Rail Ltd. fell 1.7 percent to C$165.48. A 3.2 million block trade priced at $150 a share was executed today, said Bobby Verrier of Zacks & Co.
Meg Energy Corp. rose 3.1 percent to C$40.10, its highest since September 2012. Meg will report its first quarter earnings tomorrow.