Canadian Stocks Snap Five-Day Slump as Commodity Shares Jumpby
Copper jumps most in three months, buoying commodity shares
Index gains after losing 3.4 percent in preceding five days
Canadian stocks gained Wednesday, rebounding from the steepest slump since February, even as their U.S. counterparts succumbed to a late session selloff.
The S&P/TSX Composite Index maintained gains to advance 0.3 percent to 13,923,45 at 4 p.m. in Toronto, halting a five-day retreat that sent the gauge 3.4 percent lower. A report Wednesday showed manufacturing sales in the country rose more than expected in April. Canadian stocks rose amid the biggest rally in copper prices in three months and broader gains in base metals.
Following the Federal Reserve’s decision to leave interest rates unchanged, the U.S. stock market erased gains that earlier were poised to be the biggest in three weeks.
Shares of Canadian raw-materials companies jumped 2.9 percent, leading gains as six of the benchmark’s 10 main industries advanced. Pretium Resources Inc. jumped 8.6 percent to the highest since January 2013, while Semafo Inc. added 7.1 percent to close at levels last seen in March 2012.
Utilities companies pared earlier gains of as much as 0.8 percent to close little changed. Superior Plus Corp. jumped 2 percent, the most since May 27, while Transalta Corp. fell 1.6 percent.
Energy companies slipped 0.2 percent after oil fell a fifth day, capping the longest run of declines since February, as the return of Canadian output offset a U.S. crude stockpile drop.
Shares of consumer-staples companies fell 0.6 percent, dragged down by Alimentation Couche-Tard Inc.’s 0.7 percent decline.