Canadian Stocks Pare a Monthly Loss as Oil Caps Weekly Advance

  • Metals producers, consumer staples pace February rebound
  • Goldcorp slumps, Magna International jumps on earnings

Canadian stocks advanced a second day, briefly erasing a monthly loss, as crude oil capped its biggest weekly gain since August to boost energy producers and consumer shares advanced with Magna International Inc. amid data showing faster-than-forecast growth in the U.S.

The Standard & Poor’s/TSX Composite Index rose 0.4 percent to 12,798.45 at 4 p.m. in Toronto. The benchmark equity gauge has rebounded 5.9 percent from a Feb. 11 low and is less than 2 percent from reversing losses for the year. The index is down 0.2 percent in February, seeking to avoid a ninth loss in the past 10 months.

Global equities were little changed Friday as a rally fizzled in afternoon trading. Gains came earlier after China signaled it has room for additional stimulus, while optimism over the U.S. economy tempered as signs of firming inflation fueled speculation interest rates may rise sooner than expected. The two nations are Canada’s largest trading partners. The country’s resource-rich index has benefited from a surge in the price of gold and crude’s rebound from a 12-year low.

The S&P/TSX is one of the best-performing markets in the developed world this year, battling with New Zealand for the top spot and outpacing returns from markets in the U.S., U.K. and Germany. Shares in the Canadian benchmark trade at about 20 times earnings, roughly 13 percent more expensive than the valuation of the Standard & Poor’s 500 Index, data compiled by Bloomberg show.

Raw-materials producers, led by broad gains among gold and base metals producers from Kinross Gold Corp. to Teck Resources Ltd., have surged 16 percent in February to lead the S&P/TSX’s rebound. Consumer staples stocks, led by a 15 percent rally in beverage maker Cott Corp. after posting a surprise profit, have also contributed to gains in the broader benchmark.

Health-care stocks meanwhile trail the 10-industry S&P/TSX with a 13 percent retreat, as Valeant Pharmaceuticals International Inc. slumped 14 percent in February after disclosing it will restate some earnings due to its relationship with a mail-order pharmacy.

Energy companies advanced 1.3 percent Friday, cutting a monthly slide to 3.1 percent. Oil in New York jumped 11 percent for the week, the most since August. Cenovus Energy Inc. and Husky Energy Inc. each gained 4.5 percent to pace gains.

Bombardier Inc. lost 1.9 percent as the aircraft maker’s troubled C Series program was dealt another blow after one of its largest customers, Republic Airways Holdings Inc., filed for creditor protection in New York Thursday.

Magna, the autoparts maker, jumped 7.3 percent for the biggest gain in more than four years after fourth-quarter sales beat estimates. The company also raised its dividend. Goldcorp plunged 13 percent, the most since October 2014, after the world’s third most valuable gold producer posted a surprise quarterly loss on asset writedowns.

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