Canada Stocks Cap Best Week Since April as Gold Producers RallyEric Lam
Canadian stocks rose, capping the best week since April and paring a monthly loss, as raw-materials producers increased with a rebound in the price of gold.
Yamana Gold Inc. and Semafo Inc. added more than 8.8 percent to pace gains among gold producers. CCL Industries Inc. climbed 9.6 percent after second-quarter earnings topped analysts’ estimates. Gildan Activewear Inc. tumbled 7.6 percent after the apparel maker cut its revenue target for the year. Bombardier Inc. lost 7.4 percent to a 1993 low.
The Standard & Poor’s/TSX Composite Index rose 85.95 points, or 0.6 percent, to 14,468.73 at 4 p.m. in Toronto. It rose 2 percent for the week, the most since April. The S&P/TSX slumped 0.6 percent in July for a third monthly decline. Canadian equity markets will be closed on Monday for a civic holiday.
Eldorado Gold Corp. jumped 11 percent and Goldcorp Inc. rallied 6 percent as raw-materials producers gained 2.8 percent as a group. Seven of 10 industries in the S&P/TSX advanced on trading volume 5.6 percent higher than the 30-day average today.
Gold posted the first gain in four days as investors look for hints on when the Federal Reserve will raise interest rates. Wages and salaries in the U.S. rose in the second quarter at the slowest pace on record, a setback that may prompt some Fed policy makers to call for a delay in raising rates for the first time since 2006.
Canadian gross domestic product fell 0.2 percent in May, bringing the decline since the start of the year to 0.8 percent as the economy struggled with plunging oil prices. Economists surveyed by Bloomberg projected no change in May output. The five-month decline is the longest slump since the 2008-2009 recession.
Raw-materials and energy companies are the worst performers in the S&P/TSX this year, down at least 13 percent, amid a rout in commodities prices that has driven oil into a bear market and gold to a five-year low.
Volatility in Europe and China has increased concern the global economy is slowing, resulting in lower demand for raw materials.
The Bloomberg Commodity Index has retreated 11 percent in July, for the biggest monthly decline in almost four years after sinking to a 13-year low this week.
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