Canadian Stocks Jump Most in Six Weeks as Crude Producers RallyBy
Raw-materials advance as Paris attacks spur gold haven buying
S&P/TSX had lost 4.6% in past 8 days, worst streak since 2002
Canadian stocks rose for the first time in nine sessions, snapping the worst stretch since 2002, as commodities rallied amid heightened tension after France bombed Syria in response to terrorist attacks in Paris.
Energy producers soared 3.8 percent, the most in six weeks, to lead a rebound in equities. Gold climbed for the first time in five days as the Paris attacks spurred haven buying, pushing raw-materials producers higher. West Texas Intermediate futures surged 2.5 percent after falling as low as $40.06 earlier.
The Standard & Poor’s/TSX Composite Index rose 242.10 points, or 1.9 percent, to 13,317.52 at 4 p.m. in Toronto, its biggest advance since Sept. 30. The benchmark equity gauge has lost 9 percent this year, trailed only by Singapore and Greece among developed markets.
The S&P/TSX lost 4.6 percent in the previous eight trading sessions for the longest losing streak since June 2002. Natural-resource producers slumped more than 5 percent over that period as the Bloomberg Commodity Index tracking prices from copper to crude fell to its lowest since 1999.
Canadian equities have been among the worst-performing in the world this year, led by declines in natural-resource and health-care stocks. The country’s equity market has been hampered by a slump in oil prices, slowing overseas growth and the prospect of an interest-rate increase from the Federal Reserve.
Energy producers posted a second day of gains as Suncor Energy Inc. added 3.8 percent and TransCanada Corp. rose 3.1 percent. Barrick Gold Corp. and Yamana Gold Inc. climbed more than 1.2 percent as raw-materials producers increased 0.7 percent as a group. Gold futures advanced for the first time in four sessions.
Warplanes bombed Islamic State’s nerve center in Raqqa after France said Europe’s worst terror attack in a decade was directed from Syria, which borders OPEC producer Iraq. Crude has plunged about 45 percent in the past year amid signs oversupply will persist.
Europe is on high alert after at least 129 people were killed in more than half a dozen locations in the French capital. The massacre comes less than a year after the attack on French satirical newspaper Charlie Hebdo in Paris.
DHX Media Ltd., a media entertainment producer, jumped 3.5 percent for the biggest increase in two months after reporting first-quarter profit and revenue ahead of analysts’ estimates. Of the more than 200 companies in the S&P/TSX to report in the current period, about 60 percent missed revenue estimates, according to data compiled by Bloomberg.
Valeant Pharmaceuticals International Inc. lost 2.6 percent, to a two-year low. Valeant, briefly the largest stock in Canada by market capitalization this year, has lost more than 71 percent from an Aug. 5 high amid pressure over how it prices its drugs.
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