Canadian Stocks Rise a 2nd Day on Kinross, Air Canada EarningsEric Lam
Canadian stocks rose a second day, after gaining the most in two weeks yesterday, as Air Canada and Kinross Gold Corp. rallied on better-than-forecast earnings.
Air Canada soared 5.4 percent as earnings topped estimates on fuller planes and expanding routes. Kinross rallied the most in six years as sales advanced. Cott Corp. added 3.5 percent after agreeing to buy DSS Group Inc. for about $1.25 billion to expand into new markets. SNC-Lavalin Group Inc. plunged 8.4 percent after the engineering firm reduced its annual profit outlook and said it will cut 4,000 jobs.
The Standard & Poor’s/TSX Composite Index rose 15.12 points, or 0.1 percent, to 14,563.38 at 4 p.m. in Toronto. The index has rebounded 5 percent from a low on Oct. 15.
Investors weighed comments by Mario Draghi on the European Central Bank’s stimulus plans. Draghi, speaking at a press conference in Frankfurt, said policy makers were unanimous on the use of more stimulus if needed as the ECB held benchmark interest rates unchanged at record lows.
Canada building permits rose in September, led by gains in Toronto, by 12.7 percent to C$7.5 billion ($6.58 billion) after a 27.3 percent drop in August, Statistics Canada said. Economists had forecast a 5 percent gain.
Cott, a maker of private-label soft drinks and ice teas, rose 3.5 percent to C$7.15, paring an earlier gain of as much as 16 percent. The deal accelerates Cott’s strategy of diversifying beyond carbonated drinks and juices and extends the company’s distribution channel beyond large retail and supermarket stores.
Seven of 10 industries in the benchmark Canadian equity gauge advanced today on trading volume in line with the 30-day average.
SNC, the Montreal-based engineering services company, sank 8.4 percent to C$42.34, the biggest drop in more than two years. The job cuts, which will mostly be outside of Canada, will cost the company C$300 million over the next 18 months. The move comes as slowing economic growth in some emerging markets compounds a global mining slump.
Pacific Rubiales Energy Corp. slumped 9.1 percent and Penn West Petroleum Ltd. lost 2.5 percent as crude futures slid for a fifth time in six days after OPEC cut forecasts for the amount of oil it needs to supply.
Kinross surged 12 percent to C$2.54, the strongest rally since November 2008. Kinross posted earnings and sales ahead of analysts’ projections in the third quarter, and said 2014 production is expected to come in at the high end.
Iamgold Corp. climbed 12 percent to C$1.96 and Barrick Gold Corp. increased 3.6 percent to C$12.97. The S&P/TSX Materials Index advanced 1.9 percent, the most in the broader gauge.