Canada stocks extend weekly gain
Sunday, 13 September 2009
TORONTO, Sept. 12 (Bloomberg): Canadian stocks rose, completing a second-straight weekly gain, as commodity producers rallied after industrial production in China and consumer confidence in the U.S. increased more than economists predicted.
Goldcorp Inc., the second-largest gold producer in Canada, added 1.1 per cent as the precious metal topped $1,013 an ounce before retreating. EnCana Corp., the world's biggest producer of natural gas, advanced 7.8 per cent after announcing the resumption of plans to split into two companies, one for oil and one for natural gas.
"The markets are really focused right now on the China story," said Stephen Gauthier, who helps manage C$125 million as a money manager for Demers Valeurs Mobilieres in Montreal. "Commodities in general, crude oil, copper: China's a big, big consumer of those commodities. If the economy continues to rebound in China, the usage of those commodities will go up and prices will go up accordingly."
Output at China's factories increased 12.3 per cent from a year earlier, the most since August 2008, China's statistics bureau said in Beijing today. The Reuters/University of Michigan preliminary index of consumer sentiment in the U.S. advanced to 70.2 this month from 65.7 in August. The index was forecast to rise to 67.5, according to a Bloomberg survey of economists.
Gold headed toward a fourth consecutive weekly gain as a slump in the U.S. dollar lengthened, boosting demand for the metal as a hedge against inflation. Silver climbed to a 13-month high. Goldcorp climbed 1.1 per cent to C$44.48. Iamgold Corp. rallied 2.9 per cent to C$15.18. Detour Gold Corp., a Toronto- based mining company, led stocks in the S&P/TSX with a 9.4 per cent surge to C$11.92.
Gold prices tend to go up as the U.S. dollar weakens. The Dollar Index, which tracks the U.S. dollar's performance against the currencies of six major U.S. trading partners, declined for a sixth day.
"Despite the fact that the U.S. economy seems to have stabilized, the outlook for most major economies around the world is better," Gauthier said. "The impression is interest rates will go up sooner or faster in other countries."
EnCana jumped 7.8 per cent, the most in almost six months, to C$63.52, accounting for 29.2 points of the S&P/TSX's gain. The Calgary-based company said the spinoff of its oil operations into a new company, delayed since October 2008, will take place Nov. 30.
Shareholders will receive one share of the new company, Cenovus Energy Inc., for each EnCana share they own. Analysts at Bank of Montreal and Cormark Securities Inc. raised their ratings, recommending buying the stock.
Canadian Natural Resources Ltd., the second-largest natural-gas producer in Canada, increased 3.5 per cent to C$70.21, while Calgary-based oil and gas producer Talisman Energy Inc. rose 2.6 per cent to a 12-month high of C$19.16.
Transcontinental Inc., Canada's largest printer, gained the most among S&P/TSX members not linked to commodities with an 8.8 per cent jump to a 2009 high of C$11.60. Analysts at Royal Bank of Canada and Toronto-Dominion Bank raised their ratings on the stock after the company reported third-quarter earnings that beat analyst estimates by 27 per cent, excluding certain items.
Drew McReynolds of RBC told clients Transcontinental has an "impeccable track record of realizing operating efficiencies." The company in February said it was cutting 1,500 jobs.
After posting the biggest gain in the S&P/TSX yesterday, Transat A.T. Inc., Canada's largest tour operator, sank 1.8 per cent to C$13.84. The company announced it would sell at least 4.25 million shares at C$13 a share.
Goldcorp Inc., the second-largest gold producer in Canada, added 1.1 per cent as the precious metal topped $1,013 an ounce before retreating. EnCana Corp., the world's biggest producer of natural gas, advanced 7.8 per cent after announcing the resumption of plans to split into two companies, one for oil and one for natural gas.
"The markets are really focused right now on the China story," said Stephen Gauthier, who helps manage C$125 million as a money manager for Demers Valeurs Mobilieres in Montreal. "Commodities in general, crude oil, copper: China's a big, big consumer of those commodities. If the economy continues to rebound in China, the usage of those commodities will go up and prices will go up accordingly."
Output at China's factories increased 12.3 per cent from a year earlier, the most since August 2008, China's statistics bureau said in Beijing today. The Reuters/University of Michigan preliminary index of consumer sentiment in the U.S. advanced to 70.2 this month from 65.7 in August. The index was forecast to rise to 67.5, according to a Bloomberg survey of economists.
Gold headed toward a fourth consecutive weekly gain as a slump in the U.S. dollar lengthened, boosting demand for the metal as a hedge against inflation. Silver climbed to a 13-month high. Goldcorp climbed 1.1 per cent to C$44.48. Iamgold Corp. rallied 2.9 per cent to C$15.18. Detour Gold Corp., a Toronto- based mining company, led stocks in the S&P/TSX with a 9.4 per cent surge to C$11.92.
Gold prices tend to go up as the U.S. dollar weakens. The Dollar Index, which tracks the U.S. dollar's performance against the currencies of six major U.S. trading partners, declined for a sixth day.
"Despite the fact that the U.S. economy seems to have stabilized, the outlook for most major economies around the world is better," Gauthier said. "The impression is interest rates will go up sooner or faster in other countries."
EnCana jumped 7.8 per cent, the most in almost six months, to C$63.52, accounting for 29.2 points of the S&P/TSX's gain. The Calgary-based company said the spinoff of its oil operations into a new company, delayed since October 2008, will take place Nov. 30.
Shareholders will receive one share of the new company, Cenovus Energy Inc., for each EnCana share they own. Analysts at Bank of Montreal and Cormark Securities Inc. raised their ratings, recommending buying the stock.
Canadian Natural Resources Ltd., the second-largest natural-gas producer in Canada, increased 3.5 per cent to C$70.21, while Calgary-based oil and gas producer Talisman Energy Inc. rose 2.6 per cent to a 12-month high of C$19.16.
Transcontinental Inc., Canada's largest printer, gained the most among S&P/TSX members not linked to commodities with an 8.8 per cent jump to a 2009 high of C$11.60. Analysts at Royal Bank of Canada and Toronto-Dominion Bank raised their ratings on the stock after the company reported third-quarter earnings that beat analyst estimates by 27 per cent, excluding certain items.
Drew McReynolds of RBC told clients Transcontinental has an "impeccable track record of realizing operating efficiencies." The company in February said it was cutting 1,500 jobs.
After posting the biggest gain in the S&P/TSX yesterday, Transat A.T. Inc., Canada's largest tour operator, sank 1.8 per cent to C$13.84. The company announced it would sell at least 4.25 million shares at C$13 a share.