Canada Stocks Rise as Petrobank Soars, Crude, Gold Gain
Canadian stocks rose for a fourth day as Petrobank Energy & Resources Ltd. (PBG) posted its biggest gain since March and factory prices climbed for the first time in five months. U.S. equity markets were shut for a second day.
Petrobank surged 8.1 percent after the company said its shareholders will receive the company’s stake in PetroBakken Energy Ltd. (PBN) under a reorganization. Westport Innovations Inc. (WPT), a maker of natural gas engines, plunged 14 percent for its biggest loss in more than 16 months after yesterday reducing its 2012 revenue outlook to between $340 million and $350 million from $400 million to $425 million.
The Standard & Poor’s/TSX Composite Index (SPTSX) climbed 64.30 points, or 0.5 percent, to 12,377.05 in Toronto. Raw materials companies and banks contributed most to gains on the benchmark Canadian equity gauge. Eight of 10 industries advanced and trading was 50 percent lower than the 30-day average at this time of the day.
The TSX is taking some direction from European markets which have moved broadly higher, as well as better-than-expected U.S. housing and Canadian factory price data this morning, Michael said.
“Any bit of good news is a positive but once you get a string of palpable positive developments that will help give people more confidence to spend money,” he said.
Canadian manufacturers’ prices rose in September for the first time in five months on metals such as copper and aluminum.
The S&P/Case-Shiller index of property values in 20 U.S. cities rose 2 percent from August 2011, the biggest year-to-year gain since July 2010, after climbing 1.2 percent the prior month, the group said today in New York. The median forecast of 25 economists in a Bloomberg survey projected a 1.9 percent gain.
Barrick Gold Corp. (ABX), the world’s largest producer of the metal, added 1.7 percent to C$40.27 and Goldcorp Inc. climbed 1.5 percent to C$45.30. Gold for December delivery rose 0.2 percent to settle at $1,712.10 an ounce in New York, its first advance in three days.
Petrobank jumped 8.1 percent to C$13.19 after the oil and gas explorer said it will give shareholders the company’s 57 percent stake in its subsidiary PetroBakken by the end of the year.
Suncor Energy Inc. (SU), Canada’s largest oil producer, increased 0.5 percent to C$33.27 and Canadian Natural Resources Ltd. (CNQ) gained 0.9 percent to C$30.04 as oil rose from a four-month low. Crude for December delivery climbed 14 cents to settle at $85.68 a barrel in New York.
Westport dropped 14 percent to C$24.19, the most since June 2011, after the company said it now expects revenue to grow about 30 percent this year, in a statement after the market close yesterday. The company blamed “uncertainty in the economy and delayed availability of liquefied natural gas infrastructure” that caused customers to delay ordering.
Vancouver-based Westport also announced today a deal with Tata Motors to develop engines for light- and medium-duty trucks and buses. The value of the deal was not disclosed.
A report obtained by the country’s business association investigating an update to Congo’s 10-year-old mining code said the country may increase state participation in mining projects to 35 percent from 5 percent and raise royalties on minerals exports.
A spokeswoman with Banro said in an interview with Bloomberg the company was not subject to the possible changes to the Congo mining code as it has a “mining convention” in the country.
To contact the reporter on this story: Eric Lam in Toronto at email@example.com
To contact the editor responsible for this story: Lynn Thomasson at firstname.lastname@example.org