Canada Stocks Rise 2nd Day to Two-Week High as Commodities Rallyby
Canadian Oil Sands surges a record 55% on hostile Suncor bid
Potash Corp. climbs after withdrawing bid for Germany's K+S
A rally in commodities from copper to oil sent Canadian stocks to a two-week high.
Energy and raw-materials producers led a 1.6 percent gain in Canadian equities. Copper advanced a second day, while crude climbed past $46 a barrel in New York, lifting Canada’s resource-heavy benchmark index.
The Standard & Poor’s/TSX Composite Index rose 212.46 points to 13,552.20 at 4 p.m. in Toronto, capping a Sept. 21 high. Canada joined a global rally in equities, as a weaker U.S. dollar spurred gains in commodities and emerging-nation assets.
A disappointing U.S. jobs report last week fueled bets the Federal Reserve will keep interest rates pinned near zero into 2016. That prospect of continued stimulus boosted demand for risk assets such as commodities.
Canada was among a dozen Pacific-rim that nations agreed to a historic pact that would cut trade barriers on items ranging from cars to rice. The Trans-Pacific Partnership, more than five years in the making, is designed to boost commerce among nations that produce 40 percent of global economic output.
Teck Resources Ltd. jumped 9.6 percent and First Quantum Minerals Ltd. increased 18 percent to lead mining shares higher. Copper for delivery in three months gained 1.5 percent in London. Aluminum and tin also advanced.
Canadian Oil Sands Ltd. surged a record 55 percent after Suncor Energy Inc. made an unsolicited offer to buy the company in an all-share deal for about C$4.3 billion. Under terms of the offer, Canadian Oil Sands shareholders would receive a quarter of a Suncor share, worth about C$8.84 a share based on Suncor’s closing price on Friday.
Energy producers soared 4.6 percent as a group, the most in five weeks. MEG Energy Corp. surged 2 percent and Penn West Petroleum Ltd. rallied 22 percent as oil extended gains a second day after the number of rigs drilling in the U.S. slumped to a five-year low. Baytex Energy Corp. jumped 9.7 percent and Canadian Natural Resources Ltd. gained 8.1 percent.
Potash Corp. of Saskatchewan Inc. increased 1.7 percent after the company walked away from its 7.85 billion-euro proposal to acquire German fertilizer producer K+S AG. Potash Corp. said significant declines in commodity and equity markets as well as a lack of engagement from K+S management led to the decision.