Canada Stocks Rise as Energy Jumps With U.S. Economy DataEric Lam
Canadian stocks rose to a three-week high as energy shares rallied on higher oil prices and data showed the U.S. and Canadian economies grew faster than forecast last quarter.
Pacific Rubiales Energy Corp. jumped 6.1 percent after a well test found offshore oil. Veresen Inc. gained 15 percent, its biggest-ever advance, after agreeing to a joint venture with KKR & Co. to expand pipeline and natural gas infrastructure in British Columbia. MEG Energy Corp. rose 5 percent as crude advanced in New York. Teck Resources Ltd., the nation’s largest diversified miner, jumped 4.2 percent.
The Standard & Poor’s/TSX Composite Index rose 161.65 points, or 1.1 percent, to 14,594.03 at 4 p.m. in Toronto, the highest close since Dec. 3. The index has gained 7.1 percent for the year, on pace for a third straight annual advance, the longest streak since 2007.
Nine of the 10 main industries in the S&P/TSX advanced on trading 35 percent lower than the 30-day average today.
Manulife Financial Corp. climbed 1.2 percent to C$22.41, a two-week high, after agreeing to buy New York Life Insurance Co.’s retirement plan services business in a deal that will boost the insurer’s assets under administration by about $50 billion. Terms of the deal were not disclosed.
Energy shares in the index climbed 2.2 percent to the highest since Dec. 3. West Texas Intermediate oil advanced 3.4 percent in New York while London Brent climbed 2.3 percent.
U.S. gross domestic product grew at a 5 percent annual rate from July through September, the biggest advance since the third quarter of 2003, as consumers and businesses spent more than previously estimated.
Canada’s economy rose 0.3 percent in October on gains in the public sector and commodity production, ahead of economists’ estimates. The highest forecast was 0.2 percent.
The S&P/TSX surged 5.4 percent last week, the most since July 2009, as equities worldwide climbed as oil prices stabilized and Federal Reserve Chair Janet Yellen said the U.S. central bank will probably hold rates near zero at least through the first quarter.