Miners Biggest Rally in 2015 Propels Gains in Canadian StocksEric Lam
The best day for Canadian miners this year lifted the nation’s benchmark stock index after a two-day slide.
Raw-materials producers surged the most since December as Canadian stocks snapped back from a 1.2 percent drop last week. Mining companies rallied 3.9 percent while oil producers advanced 2.2 percent, trimming annual slides for the worst performers in the nation’s benchmark index.
The Bloomberg Commodity Index, which tracks a basket of prices for raw materials including gold, natural gas and crude, soared 2.4 percent for its biggest gain since February. Oil and copper added at least 2.5 percent, while gold climbed 0.9 percent. The index had fallen to a 13-year low last week, dragging down companies that comprise about one-third of Canada’s stock market.
The Standard & Poor’s/TSX Composite Index rose 163.69 points, or 1.1 percent, to 14,466.39 at 4 p.m. in Toronto, the biggest gain since July 29. The gauge has fallen 1.1 percent in 2015, one of only three developed markets in negative territory for the year among the 24 tracked by Bloomberg.
A volatility index of S&P/TSX 60 options dropped 5.1 percent to 13.83 for a second straight decline. The measure had previously alternated gains and losses for 15 straight days across more than three weeks.
China’s crude oil imports rose to a record in July, driven by small, private refineries amid low prices. China imported about 7.3 million barrels a day last month, or 30.71 million metric tons, ahead of the previous record in December. China is the world’s second-largest oil consumer and Canada’s second-biggest trading partner after the U.S.
Cameco Corp. gained 5.4 percent, the most since April, and NexGen Energy Ltd. rallied 7.6 percent as North American uranium producers climbed on renewed optimism Japan is poised to resume nuclear-power production.
Telus Corp. dropped 1.5 percent, the most in three weeks, after Joe Natale resigned as chief executive officer, replaced by his predecessor Darren Entwistle.
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