Bloomberg News

Canada Stocks Rebound as U.S. Housing Starts Jump, Gold Rallies

April 16, 2013

Canadian stocks rose for the first time in four days after U.S. housing starts jumped more than estimated and gold rallied from its biggest drop since 1980.

Gabriel Resources Ltd. (GBU) and New Gold Inc. surged at least 6.1 percent. First Quantum Minerals Ltd. (FM) climbed 7.8 percent after copper rose from its lowest level in almost 18 months. Bank of Nova Scotia (BNS) and Bank of Montreal advanced more than 1.2 percent as financial stocks snapped three days of losses.

The Standard & Poor’s/TSX Composite Index (SPTSX) rose 117.46 points, or 1 percent, to 12,122.34 at 2:04 p.m. in Toronto, rebounding from its biggest loss of 2013 yesterday. The benchmark equity gauge dropped 4.2 percent over three days.

“The U.S. housing market is in significantly better shape than two to three years ago, and their numbers will continue to improve,” David Cockfield, fund manager with Northland Wealth Management, said from Toronto. The firm manages C$225 million ($220 million). “Yesterday was pretty extreme. The market is waiting to see what the next move is as far as gold is concerned.”

New-home construction in the U.S. jumped 7 percent in March to a 1.04 million annual rate, the most since June 2008, after a revised 968,000 pace in February that was larger than previously reported, Commerce Department figures showed today in Washington. The median estimate of 80 economists surveyed by Bloomberg called for 930,000.

Banks, Miners

Banks and commodity producers contributed most to gains in the S&P/TSX as all 10 industries advanced. Trading volume was 12 percent higher than the 30-day average at this time of the day.

Bank of Nova Scotia rose 1.2 percent to C$57.56 and Bank of Montreal gained 1.5 percent to C$63.23 as the S&P/TSX Financials index (STFINL) snapped a three-day losing streak. The group is up 1.3 percent this year.

Gabriel Resources added 6.5 percent to C$1.48 and New Gold increased 6.1 percent to C$7.16. Gold for June delivery gained 1.9 percent to $1,387.30 an ounce in New York, rebounding from a two-day, 13 percent plunge. Gold has fallen 17 percent this year, threatening to end a 12-year rally.

Silver Wheaton Corp. (SLW) climbed 0.3 percent to C$24.54 as silver for May delivery jumped 1.2 percent to $23.64 an ounce in New York. Prices for the metal plunged 11 percent yesterday, the most since September 2011.

First Quantum Resources surged 7.8 percent to C$16.80 and Teck Resources Ltd., Canada’s largest diversified miner, rose 2.5 percent to C$26.81. Copper for delivery in May added 1 percent to $3.304 a pound in New York.

To contact the reporter on this story: Eric Lam in Toronto at elam87@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus