Canada Stocks Post Best Weekly Gain In Month As Oil Leads Gains

  • Optimism growing OPEC nations will agree to output deal
  • Canada’s housing agency warns further mortgage rules needed

TSX Movers: Spartan Energy, Asanko Gold, Energy Stocks

Canadian stocks rose a second day, capping the biggest weekly gain in a month, as energy producers advanced with crude on growing optimism OPEC nations will secure an output deal.

The S&P/TSX Composite Index rose 0.3 percent to 14,864.03 at 4 p.m. in Toronto, trading at the highest level in more than three weeks. The equity benchmark is up 14 percent in 2016, making it the top performer among developed markets tracked by Bloomberg. Canadian stocks are about 10 percent more expensive than their peers in the S&P 500 Index.

Energy producers advanced 0.8 percent Friday to contribute most to gains as five of 11 industries in the S&P/TSX advanced. Trading volume was 10 percent lower than the 30-day average. Encana Corp. added 3.1 percent.

Crude capped a weekly gain of its own in New York as futures rose 0.6 percent, recouping earlier losses after OPEC member Algeria said the organization’s meeting with Russia gave it confidence a deal can be reached. Russian Energy Minister Alexander Novak said a consensus is emerging and Russia is considering an output freeze of six months. Crude prices have whipsawed between gains and losses this week as the outcome of the meeting remains murky.

Natural resource producers are the top-performing companies in the Canadian market this year, with materials stocks rallying 38 percent year-to-date on a rebound in commodities prices from gold to crude. Teck Resources Ltd., the nation’s largest diversified miner, is the top stock in the index, up almost six-fold this year as prices for coking coal and zinc have also surged.

Financial services stocks edged higher, adding 0.6 percent as a group. The head of Canada’s housing agency warned the country may need further changes to mortgage rules to further reduce risks to the real-estate market and protect the financial system.

Canadian inflation meanwhile quickened for a second month in October, advancing 1.5 percent from year-ago figures. The data are in line with expectations inflation is poised to rebound as the drag of cheaper gasoline fades and economic growth accelerates.

Brookfield Asset Management Inc. added 0.6 percent. The alternative asset manager said it was prepared to offer $13 a share to acquire TerraForm Power Inc., valuing the company at about $1.8 billion.

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