Canada Stocks Rise to Two-Month High as BlackBerry JumpsEric Lam
Canadian stocks rose to a two-month high, reversing a loss for the year, as Canadian National Railway Co. rallied and the European Central Bank unveiled a 1.1 trillion euro ($1.3 trillion) stimulus program.
Canadian National Railway surged 3.9 percent to a record to lead industrial stocks higher. Pengrowth Energy Corp. climbed 4.8 percent after cutting its budget on a drop in oil prices. Royal Bank of Canada lost 1.5 percent after agreeing to buy City National Corp. for about $5.4 billion in its biggest takeover ever. BlackBerry Ltd. climbed 6.6 percent as Samsung Electronics Co. was said to still be considering a bid for the company, according to the Financial Post said.
The Standard & Poor’s/TSX Composite Index rose 203.56 points, or 1.4 percent, to 14,763.98 at 4 p.m. in Toronto, its highest close since Nov. 27. The Canadian benchmark is up 0.9 percent for the year.
The ECB will buy 60 billion euros a month of securities until September 2016, in a push to revive inflation and the euro-area economy. The move joins a stimulative push among central banks around the world. The Bank of Canada yesterday unexpectedly cut its key rate, along with surprise cuts in Denmark, Turkey, India and Peru in the past week.
All 10 industries in the benchmark Canadian equity gauge advanced at least 0.8 percent today on trading volume that was 4.2 percent higher than the 30-day average. Industrials rallied 2.2 percent, while consumer shares gained at least 1.8 percent.
OceanaGold Corp. added 7.2 percent and Barrick Gold Corp. rose 1.2 percent as gold settled above $1,300 an ounce for the first time since August.
Bombardier Inc. soared 4.9 percent, the most since April, as industrials companies increased 2.2 percent as a group.
Royal Bank tumbled 1.7 percent after agreeing to buy City National, the Los Angeles-based banker to the stars, in a cash-and-share deal to expand sales to wealthy U.S. residents.