Canada Stocks Little Changed as Banks Outweigh Commodities Dropby and
S&P/TSX Index little changed, energy stocks and big banks gain
Financials rally for fourth day, raw-materials fall with gold
Canadian stocks were little changed, rebounding from losses earlier in the day, as gains by banks and energy companies offset a decline in commodities prices, while central bankers in the U.S. and Europe signaled caution about economic growth and inflation threats.
The S&P/TSX Composite Index fell less than 0.1 percent to 14,012.32 at 4:00 p.m. in Toronto, reversing earlier declines of as much as 0.4 percent. Volume was 26 percent below the 30-day average. The index had rallied 1 percent in the preceding two sessions.
U.S. stocks extended gains amid speculation Britain will vote to stay in the European Union, as energy producers and technology companies led the S&P 500 Index to a back-to-back gain. European shares advanced with emerging-market equities.
Financial companies advanced 0.6 percent, as Royal Bank of Canada added 0.9 percent, extending a rally to four sessions. Toronto-Dominion Bank climbed 0.8 percent, its largest in almost a month.
Energy producers added 0.6 percent as oil pared losses, while TransCanada Corp. advanced 2.2 percent, the most since March 30.
Trican Well Service Ltd. jumped 9.5 percent, for the highest close since August, after Royal Bank analyst Dan MacDonald raised his rating for the stock to the equivalent of a buy, from sector perform or a hold. He also more than doubled his price target for the stock, to C$5 from C$2, with Trican’s financial risk now seen as “greatly” reduced after a reboot of its balance sheet, he said in a note.
Shares of raw-materials producers tumbled 1.9 percent, along with a similar retreat in gold prices. Barrick Gold Corp. slumped 3 percent, its biggest drop in almost a month, while Franco-Nevada Corp. fell 2.8 percent, sliding for a third session.
Industrial companies tumbled 0.9 percent. Canadian Pacific Railway Ltd. fell 2.3 percent, with its lowest close since February, after the company cut its revenue outlook. Canadian National Railway Co. also declined 0.9 percent.
Health-care stocks dropped 2.5 percent, slumping 19 percent so far in June, poised for a second monthly loss. The group is trading at the lowest level on a closing basis since December 2010.