Canadian Stocks Join Global Rally as Energy Shares Lead Climbby and
S&P/TSX Index rises for a second day amid broad advance
Benchmark rallies after sliding for two straight weeks
Canadian stocks advanced the most in five weeks, joining a rally in global equities, as energy producers followed crude higher and financial shares had their best gains in a month.
The S&P/TSX Composite Index rose 0.8 percent percent to 14,015.14 at 4 p.m. in Toronto, the most since May 16, with all 10 main industries in the benchmark gaining. The gauge rebounded after falling for second straight week, down 1 percent. A report in Canada showed wholesale sales rose 0.1 percent in April, less than the 0.5 percent forecast.
Global equities surged, with the pound strengthening the most since 2008, on signs the campaign for the U.K to stay in the European Union was gaining momentum before this week’s referendum. Canadian stocks have climbed 7.7 percent this year, second only among developed nations to New Zealand’s 8.6 percent gain.
Energy companies rallied with oil as West Texas Intermediate crude futures traded above $49 a barrel. Enbridge Inc. rose 2.2 percent, while Cenovus Energy Inc. added 3.1 percent. Crew Energy Inc. and Baytex Energy Corp. posted the strongest gains, up more than 6.6 percent.
Financial stocks added 0.7 percent, the most since May 24. Alaris Royalty Corp. jumped 4.4 percent and Great-West Lifeco Inc. rose 2.4 percent, the best for both in four months. Brookfield Asset Management Inc. fell 0.3 percent after the company said it has completed the spin off of Business Partners LP. The company’s private equity arm tumbled 18 percent in its first regular trading session.
Technology companies gained 0.8 percent, with Kinaxis Inc. adding 3.5 percent, its biggest rally in a month. Open Text Corp. increased 2.8 percent, snapping a four-day decline of 1.6 percent.
Raw-materials companies rallied 0.3 percent, even as gold prices slipped for a second straight day. First Quantum Minerals Ltd. and Lucara Diamond Corp. both added at least 4.8 percent. Kinross Gold Corp. fell 2.2 percent as the company temporarily suspends mining and processing operations at its Tasiast mine in Mauritania. Barrick Gold Corp. lost 2 percent and fell for a third day.