Canadian Stocks Rise a Third Day as Oil Producers, Banks RiseEric Lam
S&P/TSX headed for second monthly gain, best streak in a year
Dollarama jumps most in two years after 4th quarter earnings
Canadian stocks rose a third day, as energy producers and the nation’s largest lenders advanced and investors weighed better-than-expected earnings from Dollarama Inc.
The Standard & Poor’s/TSX Composite Index rose 0.6 percent to 13,503.98 at 4 p.m. in Toronto, boosting gains to 1.1 percent during a three-day rally. The Canadian benchmark equity gauge is on track for a second straight month of gains, something it hasn’t accomplished since February 2015. The S&P/TSX is also up 3.8 percent this year and is one of the best-performing developed markets in the world trailing only New Zealand.
Energy producers and banks contributed the most to gains out of 10 industries in the S&P/TSX. Gold producers slipped 1.8 percent as the price of the metal gave back some of its gains after Federal Reserve Chair Janet Yellen’s speech yesterday voiced caution on the pace of interest rate increases.
The broader gauge now trades at 21.5 times earnings, about 15 percent more expensive than the valuation of the U.S. equity benchmark, the Standard & Poor’s 500 Index, data compiled by Bloomberg show.
Crude ended the day near $38 a barrel as the dollar’s loss eased. Government data showed U.S. crude supplies rose, keeping stockpiles at the highest level since 1930. Crude’s rebound from a 12-year low last month has stalled somewhat as investors await the results of upcoming talks among OPEC producers in April on a possible output freeze. Pipeline operators Enbridge Inc. and TransCanada Corp. added at least 2 percent to lead energy stocks higher.
Dollarama jumped 7.5 percent, the most in almost two years, after the retailer posted fourth-quarter earnings ahead of analysts’ estimates. Dollarama has also appointed Neil Rossy as chief executive officer effective May 1, replacing Larry Rossy, who will remain as executive chairman.
Bombardier Inc. added 1.5 percent after Canadian Finance Minister Bill Morneau said the government is still weighing aid for the aerospace manufacturer. In an interview with Bloomberg Television’s Erik Schatzker, Morneau said there’s no exact timeline for aid and the government is still working on its “due diligence.”
Valeant Pharmaceuticals International Inc. retreated for a fourth day, losing 7.2 percent. The drugmaker under fire with investors, U.S. regulators and lawmakers for its business practices is offering lenders a one-time fee and extra interest on its loans in exchange for waiving a default caused by a delayed earnings filing, according to people with knowledge of the matter.