TORONTO: Canadian stocks rose for a second day as commodity producers rallied amid increases in crude oil and gold prices, while gains in Valeant Pharmaceuticals International Inc. helped boost health-care companies.
The S&P/TSX Composite Index rose 0.2 percent to 13,917.10 at 4 p.m. in Toronto, extending its two-day increase to 1.2 percent after a 0.3 percent gain last week. The benchmark pared an advance in afternoon trading after rising as much as 0.6 percent, while volume was about 5 percent below the 30-day average. The gauge now trades at 21.2 times earnings, about 12 percent higher than the 19 times valuation of the S&P 500, data compiled by Bloomberg show.
Valeant climbed 7.8 percent, rising for a third session to lead health-care shares higher. Concordia Healthcare Corp. added 2.4 percent. Andrew Left, the short seller whose report on Valeant triggered the drugmaker’s tailspin, said yesterday that he’s a buyer of the stock now that many funds are exiting.
Valeant is exploring the sale of some of its smaller cosmetic and pharmaceutical assets, according to people familiar with the matter, as the Canadian drugmaker scrambles to raise cash and reduce debt.
HudBay Minerals Inc. and Encana Corp. jumped more than 4 percent as energy and raw-materials producers climbed at least 0.8 percent. Oil hit a seven-month high on speculation U.S. crude stockpiles declined last week while supply losses in Canada and Nigeria whittled away the global excess.
The two industries account for about 32 percent of the broader benchmark by market capitalization and have led gains this year with advances of at least 14 percent. That’s helped the S&P/TSX post one of the best performances this year, behind only New Zealand out of 24 developed markets.
Penn West Petroleum Ltd. surged 15 percent, the strongest performer Tuesday in the S&P/TSX. In an earnings release yesterday, the oil and natural gas producer said it exceeded production estimates in the first quarter, and reaffirmed its yearly forecast. Further, Dundee Capital Markets Inc. analyst Brian Kristjansen said the company potentially selling its Dodsland Viking assets may yield an excess of C$400 million for the company. Shares fell the most in more than 23 years yesterday as the producer seeks to amend borrowing limits before the end of the second quarter.
Horizon North Logistics Inc. jumped 7.9 percent. The temporary work camp operator’s CEO Rod Graham said his firm’s Blacksand Lodge is entirely lost due to the wildfires in Alberta. The lodge can be rebuilt, Graham said in an interview with Bloomberg.
Premium Brands Holdings Corp. and North West Co. retreated at least 3.4 percent to lead consumer staples stocks to their steepest retreat in three weeks.
