Canada Stocks Rise Second Day; Shares of Burger King Owner Jumpby
Financial stocks contribute biggest gain to S&P/TSX advance
Owner of Burger King, Tim Hortons profit tops estimates
Canadian stocks rose for a second day, as easing concerns about the global economy propped up financial and consumer companies.
The Standard & Poor’s/TSX Composite Index rose 1.4 percent to 12,554.98 at 4 p.m. in Toronto. A two-day advance has trimmed the benchmark gauge’s decline in 2016 to 3.5 percent, making it the second best-performing developed market in the world this year, behind only New Zealand. Canadian shares joined a rally in equities worldwide Tuesday after a report tracking a credit measure in China surged to a record.
Financial shares contributed the most to the S&P/TSX’s advance. Royal Bank of Canada added 2.1 percent, while Toronto-Dominion Bank gained 2.2 percent.
Element Financial Corp. climbed 6.3 percent after the company announced plan to split into two public companies: Element Fleet Management and Element Commercial Asset Management. Aviation finance will be discontinued, according to a statement today.
Consumer stocks discretionary rose 2.4 percent, the most since November 2011. Restaurant Brands International Inc. posted among the biggest gains, adding 5.9 percent after the owner of Burger King and Tim Hortons reported fourth-quarter profits that topped analysts’ estimates.
DHX Media Ltd. gained 6.1 percent, the biggest advance since December, after the company posted quarterly earnings that beat analysts’ projections and boosted its dividend.
Bombardier Inc. added 9.9 percent after the company said it expects to get certification for its new jet from U.S. and Europe in the first half of this year. Shares crossed below C$1 in late January and are down 68 percent over the past year.
The resource-rich S&P/TSX is closely linked to commodity prices with raw-materials and energy producers accounting for almost 30 percent of the overall gauge. Oil prices retreated today after a pledge by Russia and Saudi Arabia to freeze output failed to convince traders the move was enough to tackle the global crude surplus. Energy companies in Canada still gained 1.4 percent. Veresen Inc. climbed 7.7 percent, while Athabasca Oil Corp. sank 8 percent.
Raw-material producers were the only sector that fell among 10 S&P/TSX groups, as gold in the spot market slumped for a third day. Yamana Gold Inc. lost 6.7 percent.