Canada Stocks Rise for Fifth Day as Gold, Crude Producers GainEric Lam
Canadian stocks rose for a fifth day, the longest stretch of gains since August, as gold mining companies advanced with the metal and oil producers rallied.
Vicwest Inc., a metal building products maker, surged 19 percent after agreeing to sell itself to Ag Growth International Inc. and Kingspan Group Plc. Semafo Inc. and AuRico Gold Inc. increased more than 8.9 percent to pace gains among raw-materials producers. Rona Inc. rose 1.4 percent as the retailer plans to buy back shares.
The Standard & Poor’s/TSX Composite Index rose 50.47 points, or 0.3 percent, to 14,760.27 at 4 p.m. in Toronto, closing at the highest level since Oct. 3. The index has increased 2.6 percent in the past five days.
Semafo climbed 8.9 percent to C$3.06 and AuRico Gold increased 10 percent to C$4.02 as raw-materials shares advanced 2.1 percent as a group. Six of 10 industries in the S&P/TSX increased on trading volume 26 percent lower than the 30-day average.
Gold for December delivery gained 0.3 percent to settle at $1,163 an ounce in New York, rebounding from a four-year low on Nov. 7. The U.S. dollar declined for the second time in three sessions against a basket of 10 major currencies.
Rona, a Canadian home improvement retailer, rose 1.4 percent to C$13.85 after disclosing a plan to buy back as much as 10 percent of its shares and to open new stores next year. The company also posted third-quarter earnings short of analysts’ estimates.
Vicwest jumped 19 percent to C$12.66, the biggest gain since 2005. The company will sell its shares to Kingspan Group for C$12.70 each and its Westeel grain storage assets to Ag Growth. Ag Growth rallied 4.3 percent to C$50.04.
Lightstream Resources Ltd. increased 5.5 percent to C$2.90 and Enerplus Corp. rose 5.2 percent to C$17.25. WTI crude gained 0.7 percent, while Brent oil touched a four-year low amid signs OPEC is resisting calls to cut output. Saudi Arabia last week instead reduced export prices to the U.S., where production is running at the highest level in more than 30 years.