Canada Stocks Rise a 4th Day as Commodities Producers AdvanceBy
Teck Resources has biggest two-day advance since 2009
Energy stocks post best weekly gain this year as crude surges
Canadian stocks rose to cap the biggest four-day rally since 2011 as the benchmark index continued to climb back from an almost two-year low.
Equities have jumped 6.2 percent in four days after plunging the most in almost four years Monday. Investor sentiment has swung wildly amid concern China’s growth is slowing while the U.S. economy unexpectedly advanced more than analysts’ estimates.
The Standard & Poor’s/TSX Composite Index is up 2.9 percent for the week, the most since January. Raw-materials and energy producers jumped at least 2.3 percent Friday. The Bloomberg Commodity Index, a basket of 22 major resource prices, advanced for a second day with crude soaring 6.3 percent after Thursday’s 10 percent rally to cap the biggest two-day gain since 2009.
The benchmark equities index rose 98.40 points, or 0.7 percent, to 13,865.07 at 4 p.m. in Toronto. The S&P/TSX is still down 4.2 percent for the month, headed for a fourth straight monthly decline, the longest such streak since September 2011.
A volatility gauge for 60 of the largest, most liquid stocks in Canada fell 5.7 percent to 23.12. The measure touched an all-time high of 38.15 on Monday.
The resource-rich Canadian benchmark equity gauge has been one of the worst-performing developed markets in the world this year amid a collapse in crude prices. China unexpectedly devalued the yuan on Aug. 11, further fueling concerns about global growth and the demand for commodities from oil to copper.
Teck Resources Ltd. climbed 3 percent. The diversified miner has soared 27 percent in two days, the most since 2009, after announcing a plan to combine its copper-and-gold projects in Chile with Goldcorp Inc. to cut costs.
Barrick Gold Corp. jumped 4.3 percent as gold producers surged. The group has rallied 8.2 percent in two days, rebounding from a 2001 low Wednesday.
Canadian Natural Resources Ltd. and Suncor Energy Inc. increased more than 1 percent. Energy producers have surged 6.9 percent this week, the best performance since December. Oil in New York sustained a rebound above $40 a barrel, after a 10 percent rally Thursday that was the biggest in more than six years, recovering from the lowest level since February 2009 on Monday.
Bank of Nova Scotia slipped 0.6 percent after posting quarterly profit less than year-ago figures, while adjusted earnings topped estimates by a penny. Canadian banks have climbed 3.9 percent this week, the most since February, as the nation’s six largest lenders all beat profit estimates.
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