Canada Stocks Rise in Longest Rally This Year on Crude's JumpEric Lam
S&P/TSX climbs third day for longest streak since Dec. 24
Crude futures surge on report Russia, OPEC to mull supply cut
Canadian stocks rose a third day, the longest winning streak of 2016, as crude prices surged to a three-week high on a report OPEC and other producers will meet to discuss a potential output cut.
Encana Corp. soared the most in more than seven years. Canadian Natural Resources Ltd. and Crescent Point Energy Corp. jumped as all but one of 55 members in a gauge of energy producers advanced.
Oil futures surged as much as 7.8 percent in New York after Russia’s Energy Minister Alexander Novak said meeting participants in February may discuss a Saudi Arabian proposal for all oil-producing countries to trim production by 5 percent, Interfax reported. Crude settled at $33.22 a barrel, up 2.9 percent, paring earlier gains after OPEC delegates said no talks were planned.
The Standard & Poor’s/TSX Composite Index rose 1.7 percent to 12,591.93, a three-week high. The index has gained 3.7 percent in three days, paring a monthly decline to 3.2 percent.
The Bloomberg Commodity Index ended little-changed Thursday after rebounding 2.2 percent in the previous two days as crude prices jumped and gold rallied to a three-month high. Canada’s resource-rich benchmark equity gauge had moved in line with the Bloomberg index of commodities prices every day since Jan. 15 until today, according to data compiled by Bloomberg.
Potash Corp. of Saskatchewan Inc. rose 1.3 percent, reversing earlier losses that sent shares to their lowest level in more than eight years. The world’s largest fertilizer producer by market value cut its quarterly dividend for the first time since a 1989 initial public offering after a forecast of lower-than-expected earnings Thursday amid lower prices for crop nutrients.
Valeant Pharmaceuticals International Inc. tumbled 9.2 percent to a November low. The drugmaker on Jan. 25 released a memo written by Chief Executive Officer Michael Pearson that offered little on his current condition or the timing of his return to work after taking a medical leave of absence with severe pneumonia. Health-care shares fell the most in the S&P/TSX, losing 8.5 percent.
Bombardier Inc. sank 11 percent, extending a 25-year low, as the struggling aerospace manufacturer traded below C$1. Investors are losing patience with the company amid repeated delays and cost overruns in its C Series jet. The stock was one of the worst-performing in the S&P/TSX last year and has slumped 34 percent in January.