Canada Stocks Rise a 7th Day as Commodities, Real Estate RallyEric Lam
Canadian stocks rose a seventh day, the longest streak since February, as commodity prices climbed and real-estate shares advanced after housing starts rose more than expected in May.
Semafo Inc. increased 1.3 percent as gold traded higher for the second time in three sessions. Pacific Rubiales Energy Corp. and NuVista Energy Ltd. rallied at least 2.2 percent as crude rose to a three-month high. Ritchie Bros. Auctioneers Inc. added 4 percent after analysts at Cantor Fitzgerald LP raised the stock’s rating on rising auction proceeds. Home Capital Group Inc. rose 1.3 percent to pace gains among financial stocks.
The Standard & Poor’s/TSX Composite Index increased 32.31 points, or 0.2 percent, to 14,871.21 at 4 p.m. in Toronto. The benchmark equity gauge is 1.4 percent away from its record closing high of 15,073.13 on June 18, 2008. The price-to-earnings ratio for the benchmark equity gauge is 19.9, the highest since 2011.
Home Capital Group increased 1.3 percent to C$50.56, a record. Canadian housing starts were 198,324 units at a seasonally adjusted annual pace in May, Ottawa-based Canada Mortgage & Housing Corp. said on its website. Economists had forecast a 185,000 advance.
Ritchie Bros. jumped 4 percent to C$26.26, the most since December. Eight of 10 industries in the S&P/TSX advanced.
Peter Prattas, analyst at Cantor Fitzgerald, boosted Ritchie Bros. to a buy from a hold after the equipment auctioneering company on June 6 reported a 30 percent increase in May gross auction proceeds to $299 million, compared with $230 million a year ago.
“Momentum is building in auction proceeds providing us greater confidence that Ritchie Bros. can achieve the higher end of its 2014 guidance,” Prattas said in a note today.