Canada Stocks Rise as Miners’ Gains Offset Drop in Oil Producersby
S&P/TSX adds 0.2 percent, extending 2016 gain to 13 percent
Energy and health-care companies decline as crude oil falls
Canadian stocks rose for a third day as a rally in metals and mining companies overshadowed decline in energy shares fueled by a slump in crude.
The S&P/TSX Composite Index added 0.3 percent to 14,682.01 at 4 a.m. in Toronto, giving the benchmark index its longest advance in three weeks. Trading volume was 20 percent lower than the 30-day average. The Canadian measure is the second-best performing developed market in the world this year with a 13 percent gain, trailing only New Zealand.
Five of 10 industries in the S&P/TSX advanced, with raw-material producers rising 1.2 percent to pace gains. The group tumbled 6.5 percent last week, the biggest five-day decline since October. Copper producer Teck Resources Ltd. surged 8.2 percent to the highest level since September 2014. New Gold Inc., Goldcorp Inc. and Iamgold Corp. climbed more than 2.4 percent to lead gold producers higher.
Phone companies and industrial stocks in the S&P/TSX increased 0.5 percent, with BCE Inc. rallying 1 percent to lead the advance. Energy producers lost 0.3 percent as crude slumped 1.4 percent in New York.
Mining and materials companies remain the top gainers this year with a 49 percent advance. That’s boosted the Canadian equity benchmark to a 13 percent jump in 2016, rebounding from a slump last year that was the worst for the S&P/TSX since the 2008 financial crisis. The rally has made Canadian stocks more expensive than their U.S. peers, with a price-earnings ratio of 24 for the S&P/TSX, about 14 percent higher than the S&P 500 Index.