Canada Stocks Rally Most in 3 Weeks as Valeant, Oil GainEric Lam
Canadian stocks rose for a second day, climbing the most in three weeks, as Valeant Pharmaceuticals International Inc. extended a record and crude prices held steady.
Valeant jumped 6.2 percent, extending a record after raising its earnings forecasts for the year. Penn West Petroleum Ltd. and Pacific Rubiales Energy Corp. rallied at least 4.9 percent as energy producers advanced to snap a three-day slump. Insurers Sun Life Financial Inc. and Manulife Financial Corp. rose to pace gains among financials stocks.
The Standard & Poor’s/TSX Composite Index rose 172.72 points, or 1.2 percent, to 14,457.72 at 4 p.m. in Toronto, the most since Dec. 17. The benchmark equity gauge has rallied 1.5 percent in two days, after posting the worst three-day start to a year since 2007.
Valeant surged 6.2 percent for a second day of gains to give health-care stocks the best performance in the S&P/TSX. All of the 10 main industries in the S&P/TSX advanced as trading volume was 8.2 percent below the 30-day average.
Valeant, Canada’s largest drugmaker, said it now forecasts 2015 cash earnings per share of $10.10 to $10.40, from $10. The company also boosted its forecasts for revenue.
Global stocks rallied on signs central banks will likely remain stimulative. The MSCI World Index jumped 1.9 percent, the most in three weeks, as the S&P 500 rallied 1.8 percent in New York.
Data in Europe indicated producer prices and German factory orders slid more than anticipated, bolstering the case for the European Central Bank to boost stimulus. The Federal Reserve yesterday signaled no change in interest-rate policy amid accelerating growth in the economy.
Pacific Rubiales climbed 5.2 percent to C$6.08 and Penn West rose 4.9 percent to C$2.13 as the S&P/TSX Energy Index jumped 1.6 percent. The industry had lost 8.6 percent in the past three days. West Texas Intermediate crude rose 14 cents to settle at $48.79 a barrel in New York.
Restaurant Brands International Inc., which owns the Burger King and Tim Hortons brands, surged 2.5 percent to C$47.65, a record.
First Quantum Minerals Ltd. jumped 6.5 percent and Teck Resources Ltd. climbed 4.6 percent as copper rose for the second time in four days.