Canadian Stocks Rise as China, U.S. Data Offset Factory Sales
Canadian stocks climbed, extending their gain for the week, as optimism about the global economy fueled by American and Chinese manufacturing reports offset a slump in factory sales and concern about U.S. budget talks.
Dundee Corp. surged 14 percent after the company said it will give shareholders a 50 percent stake in Dundee Real Estate Investment Trust, its 70 percent-owned real-estate unit. China Gold International Resources Corp. declined 5.8 percent as the precious metal dropped for a third straight week. Encana Corp. slipped 4.3 percent a day after PetroChina Co. agreed to pay C$1.18 billion ($1.2 billion) for a 49.9 percent stake in an Alberta shale formation.
The Standard & Poor’s/TSX Composite Index rose 7.55 points, or 0.1 percent, to 12,296.72. The equity gauge gained 1.1 percent for the week and is up 2.9 percent this year.
“You’ve got some positive impulses and some negative impulses, so we’re stabilizing and we’ll see more stabilization later,” Robert “Hap” Sneddon, president of Castlemoore Inc. in Oakville, Ontario, said in a phone interview. “We had a little bit of a positive with Harper allowing two sovereign deals to go through in the oils.”