Canada Stocks Rise as Energy Producers Rally With Crude Prices

Updated on
  • Toronto-Dominion jumps to lead advance in biggest banks
  • Gold retreats amid speculation Fed will raise rates this year

Canadian stocks rose, climbing for the fourth time in five days, as industrial companies rallied and energy producers advanced with crude.

Equities jumped 1 percent as a gauge of diversified commodities prices increased for only the second time in seven sessions. Oil advanced on signs that producers are investing less in drilling, which could take a bigger bite out of falling U.S. crude production.

The Standard & Poor’s/TSX Composite Index rose 132.54 points to 13,779.44 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has pared a monthly decline to 0.6 percent, which would be a fifth straight drop.

Industrial and energy companies rallied at least 1.8 percent. Pipeline operators rose as Enbridge Inc. jumped 3.5 percent and TransCanada rose 4.1 percent. Canadian Pacific Railway Ltd. and Canadian National Railway Co. climbed more than 1.3 percent.

Financial companies increased 1.8 percent. Toronto-Dominion Bank, the nation’s largest lender, increased 1.8 percent.

Suncor Energy Inc. climbed 2.2 percent after it agreed to buy an additional 10 percent working interest in the Fort Hills oil sands project from Total E&P Canada Ltd. for C$310 million.

Valeant Pharmaceuticals International Inc. sank 4.9 percent, the most in a month, joining a slump in U.S. health-care stocks. The Nasdaq Biotechnology Index sank 4.4 percent after Democratic presidential candidate Hillary Clinton said some “price gouging” in the specialty drug market was “outrageous” in a tweet. Clinton is expected to disclose a drug pricing plan tomorrow.

Raw-materials producers tumbled 1.9 percent as gold prices declined. Gold futures fell for the second time in three sessions, down 0.4 percent to settle at $1,132.80 an ounce in New York as comments from some Federal Reserve officials fueled concern the central bank may raise interest rates this year.

First Quantum Minerals Ltd. tumbled 9.4 percent for a second straight retreat and Teck Resources Ltd. lost 5.1 percent. Energy and raw-materials producers are the worst-performing industries in the S&P/TSX this year, each tumbling 20 percent as oil has plunged more than 25 percent from this year’s closing peak in June.

The spread between U.S. crude and the more expensive international benchmark Brent narrowed as West Texas Intermediate futures climbed 4.5 percent to settle at $46.68 a barrel. The spread averaged $2.25 last week, the least since January. U.S. production has declined for six weeks even as the Organization of Petroleum Exporting Countries has sustained output.