Canada Stocks Little Changed as Valeant Rises, Gold Shares DropGerrit De Vynck
Canadian stocks were little changed after three straight days of increases as Valeant Pharmaceuticals International Inc. shares rose, offsetting a loss among precious metals producers.
Valeant climbed to a two-week high. Bankers Petroleum Ltd. and Enerplus Corp. rose at least 1.3 percent as crude prices climbed. New Gold Inc. and Silvercorp Metals Inc. declined more than 2.9 percent as gold prices slumped. Bombardier Inc. dropped 2.1 percent for a third day of losses.
The Standard & Poor’s/TSX Composite Index rose 5.81 points, or less than 0.1 percent, to 14,708.10 at 4 p.m. in Toronto. The S&P/TSX index has increased 0.4 percent in May, an 11th straight month of gains for its longest streak since 1983. The price-earnings ratio for the benchmark equity gauge has climbed to 19.6, the highest level since 2011.
“Money’s not moving,” said Philip Petursson, director of institutional equities at Manulife Asset Management Ltd. in Toronto. “Market participants are actually waiting for evidence that the Q1 slower economic growth which everyone believes is weather-related does prove out to be weather-related and follows with a nice Q2 rebound,” he said by phone. Manulife manages about C$292 billion ($269 billion).
Valeant increased 1.8 percent to C$145.01, the highest close since May 7, as health-care stocks rose 1.3 percent as a group. Seven of 10 industries in the S&P/TSX advanced on trading volume 33 percent lower compared with the 30-day average.
Prices for West Texas Intermediate crude oil rose to a five-week high after violence flared in Ukraine ahead of the country’s presidential election and U.S. crude inventories tumbled. Crude for July delivery rose 0.6 percent to settle at $104.35 a barrel in New York, the highest close since April 21.
Gold declined in New York as the U.S. dollar strengthened, making the greenback an attractive alternative to gold for a safe-haven investment.
Bankers Petroleum added 2.2 percent to C$6.56 and Enerplus gained 1.3 percent to C$23.92. New Gold retreated 2.9 percent to C$5.63 and Silvercorp dropped 3.9 percent to C$1.97.
Chinook Energy Inc. increased 6.6 percent to C$2.25 after providing drill results for a new well it brought online in April in the Montney shale area.
Kelso Technologies Inc., which makes valves for the transportation industry, lost 3.4 percent to C$6.54 on its second day of trading after listing on the Toronto Stock Exchange. It was previously listed on the TSX Venture Exchange.
Bombardier sank 2.1 percent to C$3.75. Shares of the aircraft manufacturer have dropped 4.6 percent in the past three days since Bombardier’s biggest customer, Republic Airways Holdings Inc., said its order for 40 CSeries jet aircraft was no longer a top priority.