Canada Stocks Rise for Third Day as Bank Earnings Beat EstimatesGerrit De Vynck
Canadian stocks rose for a third day after the biggest banks reported better-than-estimated earnings.
Royal Bank of Canada jumped 1.6 percent and Toronto-Dominion Bank increased 2.6 percent as gains from consumer banking and wealth management boosted profit. Financial companies added 0.9 percent, the biggest increase among 10 industries in the S&P/TSX. Corvus Gold Inc. rose 9.7 percent after saying it had found more gold at its Yellowjacket deposit in Nevada.
The Standard & Poor’s/TSX Composite Index rose 52.43 points, or 0.4 percent, to 14,702.29 at 4 p.m. in Toronto. The gauge has risen for 10 months straight, its longest steak since 1983, and is 0.4 percent below an almost six-year high reached on May 2.
“The earnings did surprise and certainly the market seems to like them,” said John Kinsey, a fund manager at Caldwell Securities Ltd. in Toronto. His firm oversees about C$1 billion ($920 million).
Canadian retail sales decreased 0.1 percent in March, compared with a 0.3 percent increase predicted by economists surveyed by Bloomberg.
The government-owned Canada Mortgage and Housing Corp. said housing starts will slow this year to 181,100 new units. Last year, 187,923 units were built.
Canada’s banks, ranked as the world’s soundest by the World Economic Forum for six straight years, have continued to post profit growth despite a slowdown in domestic consumer lending.
Royal Bank climbed 1.6 percent to C$75.46 after reporting its second-quarter net income gained 15 percent to C$2.2 billion, or C$1.47 a share. Toronto-Dominion gained 2.6 percent to C$53.25. Its profit increased 16 percent to C$1.99 billion, or C$1.04 a share.
Corvus Gold gained 9.7 percent to C$1.25. The Vancouver-based miner said it had extended high grade gold veins at the North Bullfrog Project in Nevada.
Bombardier Inc. lost 1.3 percent to C$3.83, extending a drop of 1.3 percent yesterday after a key customer for its new CSeries jets said it was considering whether to take the planes after a change in airline strategy.
ATS Automation Tooling Systems Inc. advanced 1.4 percent to C$14.82 after reporting fourth-quarter revenue that surpassed analyst estimates.
Sears Canada Inc. slid 4.5 percent to C$14.40 as parent company Sears Holdings Corp., the retailer controlled by billionaire hedge-fund manager Edward Lampert, posted a wider first-quarter loss amid a sales decline that’s stretched into its seventh year.