Canada Stocks Rally as Financial, Energy Shares Continue Reboundby
Oil jumps to above $30 a barrel, benefiting energy companies
Bombardier surges amid Air Canada order, job cut announcement
Canadian stocks rose for a third day to its highest level in six weeks, as energy and financial stocks climbed amid higher oil prices and increasing speculation that the recent selloff was overdone.
The Standard & Poor’s/TSX Composite Index rose 2.5 percent to 12,867.16 at 4 p.m. in Toronto, as nine of the 10 main industries advanced. A three-day rally has boosted the benchmark index’s performance to be the best this year among 24 developed equity markets tracked by Bloomberg.
Equities worldwide advanced after a report showed wholesale prices in the U.S. unexpectedly increased in January and manufacturing output climbed by the most since July. Canadian equities also followed a trend in global markets where some of this year’s most beaten-down sectors -- energy, financial and consumer shares -- led the rally on Wednesday.
Consumer discretionary companies advanced for a third consecutive day. Intertain Group Ltd. gained 6.5 percent, while Linamar Corp. added 6.2 percent.
Rona Inc. gained 0.3 percent to its highest close since July 2007, after the company reported quarterly earnings that topped analysts’ estimate.
Financial stocks contributed the most to Wednesday’s rally. Manulife Financial Corp. gained 7.5 percent, while Royal Bank of Canada added 2.2 percent.
Energy producers rallied the most out of 10 S&P/TSX groups, as oil prices surpassed $30 a barrel. Canadian Natural Resources Ltd. and Suncor Energy Inc. jumped more than 6.1 percent.
Bombardier Inc. surged 21 percent, the biggest gain since September, as the manufacturer won a crucial order for its new C Series jet from Air Canada. The company also revealed a plan to cut 7,000 jobs and said it plans a reverse stock split. Meanwhile, Air Canada retreated 12 percent.
Raw-material producers advanced 2.4 percent, reaching its highest level since October, as commodity prices went up.
First Quantum Minerals Ltd. jumped 26 percent as copper prices climbed. The copper miner has surged 68 percent in the past four days.