Canada Stocks Rise a 4th Day as Canaccord Genuity, Magna AdvanceEric Lam
Canadian stocks rose a fourth day to a six-year high, erasing earlier losses amid improving earnings from financial companies.
Canaccord Genuity Group Inc. climbed 1.2 percent after reporting higher-than-estimated fourth-quarter profit on improving U.S. and U.K. operations. Laurentian Bank added 1 percent after posting better-than-expected profit. Magna International Inc. and Martinrea International Inc. rallied at least 1.9 percent to pace gains among auto parts makers. Teck Resources Ltd., Canada’s largest diversified miner, and First Quantum Minerals Ltd. lost at least 1.5 percent as copper sank the most in five weeks.
The Standard & Poor’s/TSX Composite Index rose 62.10 points, or 0.4 percent, to 14,796.79 at 4 p.m. in Toronto, the highest since June 2008. The gauge is 1.8 percent below its all-time closing high of 15,073.13, reached on June 18, 2008.
“The Canadian market is mirroring the U.S., and the two major pieces of information the market is looking forward to is the ECB decision tomorrow and the jobs numbers on Friday,” said Luciano Orengo, a fund manager at Manulife Asset Management Ltd. in Toronto. His firm manages about C$298 billion ($272 billion).
The price-to-earnings ratio for the benchmark equity gauge is 19.8, the highest level since 2011.
The European Central Bank is scheduled to release its next rate decision tomorrow amid speculation central bankers will introduce unconventional measures such as quantitative easing. The pace of U.S. hiring likely slowed in May, to 217,000 from 288,000 jobs in the previous month, according to the average estimate of economists surveyed by Bloomberg.
Canaccord Genuity rose 1.2 percent to C$11.21, the highest since August 2011. Laurentian Bank gained 1 percent to C$48.06.
Martinrea jumped 5.4 percent to C$12.23 and Magna International rose 1.9 percent to C$116.05, a record, as consumer discretionary stocks rose 1 percent as a group for the biggest increase in the benchmark equity gauge. Eight of 10 industries in the S&P/TSX advanced on trading volume 2.8 percent above the 30-day average.
First Quantum Minerals retreated 1.9 percent to C$22.13 and Teck Resources slipped 1.5 percent to C$23.83. Copper for July delivery slid 1.4 percent in New York, the biggest drop in five weeks, as signs of slowing economic growth in Europe fueled demand concerns.