Canada Stocks Rise to 11-Month High as Energy, Industrials Gainby
S&P/TSX caps 3-day rally, closes at highest since August
Industrials close at 11-month high, Bombardier hits 2016 high
Canadian stocks rose to the highest in 11 months, led by energy producers as crude surged amid prospects for more stimulus in major economies.
The S&P/TSX Composite Index rose 0.8 percent to 14,477.67 at 4 p.m. in Toronto for a third consecutive rally, with nine of 10 main industries gaining. Trading volume for shares in the benchmark was 8 percent higher than the 30-day average.
Global equities advanced for a fourth session after Japanese Prime Minister Shinzo Abe vowed to speed up efforts to defeat deflation, while a majority of economists expect the Bank of England to cut interest rates this week and traders are betting there will be further monetary easing in the euro area this year.
Energy companies in Canada climbed 2.2 percent to the highest in a year, with MEG Energy Corp. and Ensign Energy Services Inc. each rising at least 6.4 percent. West Texas Intermediate crude futures in New York gained 4.6 percent, its best since April.
Industrial shares advanced 1.4 percent to the highest since August. Bombardier Inc. increased 3.4 percent to its highest in a year, after Porter Airlines Inc. confirmed a $93 million order for three Bombardier Q400s. WestJet Airlines Ltd. provided the biggest move for the group, gaining 5 percent.
Colliers International Group Inc. and Home Capital Group Inc. increased at least 3.8 percent to lead the nation’s financial sector higher. The sector extended a rally to three sessions, its best increase for that duration since April. Genworth MI Canada Inc. rose 3 percent, the most in four months.
Northland Power Inc. surged 6.7 percent, the most since October 2008, to a record after the renewable energy producer said it hired bankers to undertake a strategic review to focus on enhancing growth, shareholder value and the ability to capitalize on opportunities in clean energy infrastructure.
Raw-materials were the industry to retreat, falling 2.5 percent, as gold dropped. Endeavour Mining Corp. fell 9.4 percent after announcing a board change. SEMAFO Inc. and Barrick Gold Corp. lost at least 6.6 percent.