Canada Stocks Rise From 2-Year Low as Bank Rally Offsets Valeantby
Benchmark gauge erases drop in last 30 minutes to eke out gain
Canadian equities down 10% in third quarter, most since 2011
Canada stocks rose from a two-year low on Monday, with the benchmark index erasing a loss in the final 30 minutes of trading as banks rallied with industrial companies. The gauge remains on track for its worst quarterly slide since 2011.
Bank of Montreal and Bank of Nova Scotia jumped at least 1.3 percent as financial services firms in the index advanced. Bombardier Inc. surged 7 percent to lead industrial shares higher. Valeant, the third-largest company in Canada’s benchmark equity gauge by market capitalization, sank 4.4 percent, extending declines to the lowest since February.
Raw-materials producers increased after plunging to a 10-year low Monday. Oil advanced ahead of data Wednesday expected to show a decline in U.S. crude supplies. Glencore Plc jumped 17 percent, a record, after plummeting 29 percent a day before.
The Standard & Poor’s/TSX Composite Index rose 32.38 points to 13,036.96 at 4 p.m. in Toronto, after closing at an October 2013 low yesterday. The gauge has declined 5.9 percent in September, the worst drop since 2012. It’s down 10 percent in the quarter that ends Wednesday.
Global markets retreated, as the MSCI All-Country World Index slipped 0.6 percent to extend a two-year low. The S&P 500 rose 0.6 percent in New York while the Stoxx Europe 600 fell 0.6 percent.
The Bloomberg Commodity Index, which tracks a basket of prices from live cattle to gold, recovered 0.3 percent after a 1.3 percent drop yesterday. The gauge has plunged 16 percent this year.
Potash Corp. of Saskatchewan Inc. rose 1.1 percent as raw-materials companies advanced 0.3 percent as a group. The gauge has slumped 11 percent in September, headed for a fifth straight monthly decline.
Valeant fell for a fourth day, bringing its rout in September to 30 percent. Smaller drugmaker Concordia Healthcare Corp. has plummeted 46 percent this month.
Canadian equities are among the worst-performing markets in the developed world this year with an 11 percent slide, led by declines among raw-materials and energy producers of at least 24 percent. Commodity shares have retreated amid plunging oil prices and uncertainty about global economic growth, especially in China. China is Canada’s second-largest trading partner after the U.S.