Canada Stocks Halt 5-Day Rally as Energy Slide Offsets Gold Gain

  • S&P/TSX climbs 4.7% for best weekly performance since December
  • Economy added 12,100 jobs in September, third monthly increase

Canadian stocks were little changed, as equities capped the best weekly performance this year, after the economy added jobs for a third straight month in September and more people entered the labor force looking for work.

Equities ended the day down 0.1 percent after swinging between gains and losses, as increases among raw-materials producers offset a drop in energy stocks after a five-day rally. Gold advanced to a six-week high as minutes of the Federal Reserve’s latest meeting increased speculation the central bank will hold off raising interest rates until next year.

Canadian stocks have rallied this week, joining markets around the world in a rebound from the worst quarter since 2011, led by gains in oil and mining companies. The MSCI All Country World Index climbed an eighth straight day, the longest streak of gains since February. Canadian markets will be closed on Monday for the Thanksgiving holiday.

The Standard & Poor’s/TSX Composite Index fell 14.30 points to 13,964.36 at 4 p.m. in Toronto, trading near the highest level since August. The benchmark Canadian equity gauge has climbed 4.7 percent this week, the best weekly advance since December. The index has lagged global peers among developed markets this year with a 4.6 percent decline.

The Canadian economy added 12,100 jobs in September, ahead of economists’ median projections for a 10,000 increase. The unemployment rate rose to 7.1 percent from 7 percent as more people returned to the workforce, according to the report from Statistics Canada in Ottawa. September’s gains were led by a 74,000 gain in part-time jobs. Full-time positions dropped 61,900, the largest decline since October 2011.

The jobs report is the last before an Oct. 19 federal election, followed by the next Bank of Canada rate decision Oct. 21.

“The headline numbers are OK, not disastrous,” said Geoffrey Pazzanese, a global equity fund manager at Federated Investors Inc., on the phone from New York. His firm manages about $360 billion. “There’s not much the Bank of Canada can do about commodity prices, but keeping rates low can help the other parts of the economy.”

First Quantum Minerals Ltd. rose 0.8 percent, capping a 65 percent rally this week. The copper mining company said Oct. 5 it will use proceeds from asset sales and other initiatives to reduce debt. Goldcorp Inc. and Barrick Gold Corp. increased at least 5.5 percent as gold jumped.

Commodities producers have rebounded as the U.S. dollar has weakened on bets the Federal Reserve will delay raising interest rates. The Bloomberg Dollar Spot Index fell for the sixth time in seven days.

Clearwater Seafoods Inc. climbed 7.8 percent, the most in two months, after agreeing to buy Macduff Shellfish for GBP94.4 million, plus GBP4 million in debt.

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