Canadian Stocks Rise to Record as Energy Shares AdvanceEric Lam
Canadian stocks rose, driving the benchmark index to a record, with energy producers climbing as crude oil capped the first weekly gain in a month.
Pine Cliff Energy Ltd. jumped 25 percent to an all-time high after agreeing to buy natural gas assets for C$100 million in cash. Torex Gold Resources Inc. and Sherritt International Corp. fell at least 2.2 percent to pace declines among raw-materials producers. Canadian Pacific Railway Ltd. added 3.3 percent for a fourth day of gains.
The Standard & Poor’s/TSX Composite Index rose 62.09 points, or 0.4 percent, to 15,266.57 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has advanced 12 percent this year, the second-best performer among the world’s developed markets. The benchmark equity gauge previously closed at a record on July 16.
Canada’s inflation rate unexpectedly increased to 2.4 percent in June, the most in more than two years, on higher food and clothing costs. The increase exceeded economist forecasts and comes two days after the central bank said it will ignore quicker price gains.
Encana Corp. added 1.4 percent to C$23.23 and Canadian Oil Sands Ltd. rose 1.2 percent to C$23.78 as energy stocks gained 0.8 percent as a group. Nine of 10 industries in the S&P/TSX advanced on trading volume 18 percent lower compared with the 30-day average.
Encana is preparing to sell its Deep Panuke offshore project in Nova Scotia later this year, according to people familiar with the matter, as Canada’s largest natural gas producer shifts production toward more oil.
West Texas Intermediate posted the first weekly gain in a month amid rising international tensions in Europe and the Middle East. WTI has climbed 3.2 percent since dropping below $100 a barrel on July 15 for the first time in two months.
Torex Gold lost 2.4 percent to C$1.60 and Sherritt International dropped 2.2 percent to C$4.36.
Gold for August delivery fell 0.6 percent to $1,309.40 an ounce in New York, after rallying 1.3 percent yesterday when a Malaysia Airlines plane was shot down over Ukraine and Israel sent ground forces into the Gaza Strip.
First Quantum Minerals Ltd. decreased 1 percent to C$24.86 and Lundin Mining Corp. dropped 1.3 percent to C$6.09 as copper fell to the lowest in more than two weeks in New York. Nickel declined the most since May 15.