TSX rises for fourth day, led by miners


Canadian stocks rose, following a fourth straight week of gains, as raw-material producers climbed after gold advanced above $1,300 an ounce and copper increased.

Gold and silver producers made up all of the 10 biggest gains in the Standard & Poor’s/TSX Composite Index. Eldorado Gold Corp., a producer of the metal with mines in China, Europe and Brazil, surged 11 percent as analysts at JPMorgan Chase & Co. recommended buying the shares. Centerra Gold Inc., which operates the Kumtor pit in Kyrgyzstan, added 8.7 percent. Royal Bank of Canada advanced 0.7 percent for a eighth day of gains, the longest stretch in a year.

The S&P/TSX rose 70.44 points, or 0.6 percent, to 12,755.57 at 12:45 p.m. in Toronto. The benchmark gauge rallied 1.8 percent last week to the highest since May 30. Trading volume was 5.4 percent below the 30-day average at this time of day.

“These big jumps in financials and positive moves in the commodities may be enough to get people on the sidelines wanting to get back in,” Barry Schwartz, fund manager with Baskin Financial Services Inc. in Toronto, said in a phone interview. He helps manage about C$500 million ($487 million). “This may be the beginning of the bear in the Canadian market going back into his cave to hibernate.”

The S&P/TSX has risen 7.8 percent since June 24, rebounding from a 7.2 percent drop between May and June.

Gold advanced 3.1 percent to $1,333.50 an ounce as speculation the Federal Reserve will maintain stimulus spurred demand for the metal. Silver gained 5.3 percent. Copper rose for a third day, increasing 1.6 percent to $3.1871 a pound on the Comex in New York.

Five of the ten industries in the S&P/TSX advanced, led by a 3.5 percent surge among producers of raw materials. The benchmark index is up 2.5 percent this year.

Banks, brokerages and insurers in the S&P/TSX climbed 0.2 percent as a group, following a 2.7 percent gain last week.

Eldorado Gold jumped 11 percent to C$8.18, the highest in six weeks, after JPMorgan analyst John Bridges rated the stock “overweight” in new coverage. Centerra Gold added 8.7 percent to C$4.64.

Intact Financial Corp., rose 2 percent to C$58.69. The largest property and casualty insurer in Canada said it will record losses of C$257 million from flooding in Alberta and Toronto, and a train explosion in Quebec.

“We expect the pre-announcement will remove some of the uncertainty and overhang on the stock,” Tom Mackinnon, an analyst at BMO Capital Markets, said in a note to clients today.

Bloomberg.com

Related Posts