By Warangkana Chomchuen
NEW YORK (MarketWatch) — Canadian stocks rallied on Thursday, as rising commodity prices boosted the energy and mining sectors.
The S&P/TSX Composite Index gained 142 points to 12,167.
New York Fed President William Dudley said on Thursday that the U.S. economy is not yet strong enough to make a big dent in the jobless rate.
Dudley seemed to indicate willingness to accommodate the idea of further Fed intervention, said Danielle Park, president and portfolio manager at Ontario-based Venable Park Investment Counsel Inc.
Markets shrug off jobs data
U.S. stocks opened higher as investors shrugged off muted jobs data and focused on decent demand for an Italian bond auction and dovish remarks from the New York Fed's president. Jonathan Cheng reports on Markets Hub. Photo: AP
Higher metals prices boosted stocks in the mining sector.
Gold for June delivery rallied 1% on the Comex division of the New York Mercantile Exchange.
Barrick Gold Corp. /zigman2/quotes/209252292/delayed CA:ABX -3.34% shares climbed 2%.
Shares of Eldorado Gold Corp. /zigman2/quotes/207321207/delayed CA:ELD -6.07% rallied 8.2% after the company said it plans to invest almost $2 billion in development over the next five years to reach its gold production target of 1.7 million ounces annually by 2016, representing a 160% growth.
Copper prices also advanced. Shares of First Quantum Minerals Ltd. /zigman2/quotes/209694942/delayed CA:FM -7.00% rallied 6.7% and Teck Resources Ltd. climbed 3%.
Capstone Mining Corp. /zigman2/quotes/209663346/delayed CA:CS -9.91% shares jumped 10%. The company reported first-quarter production of 18.6 million pounds of copper in concentrates. The company said its Cozamin mine produced a record amount of copper for the second straight quarter.
The S&P/TSX Capped Energy Index /zigman2/quotes/210598495/delayed XX:TORGC187 -7.81% rose 1.5%, as crude-oil futures gained ahead of talks over Iran’s nuclear program this weekend. Shares of Suncor Energy Inc. /zigman2/quotes/204570600/delayed CA:SU -9.26% /zigman2/quotes/210480277/composite SU -9.87% gained 2%, while Canadian Natural Resources Ltd. /zigman2/quotes/203742161/delayed CA:CNQ -7.03% /zigman2/quotes/203976248/composite CNQ -7.62% rose 3.6%.
Canadian stocks rose amid Thursday’s mixed bag of economic data.
The U.S. reported a higher number of claims for jobless benefits, but said its trade deficit has narrowed after exports increased and imports from China declined.
At home, Canada’s trade surplus in February unexpectedly shrank to C$292 million, Statistics Canada said. The number was much lower than the consensus estimate of about C$2 billion.
In earnings, Cogeco Cable Inc. /zigman2/quotes/210154363/delayed CA:CCA -1.08% shares slipped 2.7% after the company reported a decline in second-quarter profit from continuing operations. The cable distributor’s revenue increased 8% but missed analysts’ estimates.
Fibrek Inc. shares sank 7% after Resolute Forest Products — formerly known as AbitibiBowater Inc. — said it has acquired 46.8% ownership of the pulp producer by the offer’s deadline late Wednesday through a hostile takeover bid.
Valeant Pharmaceuticals International Inc. shares edged up 1.4% after the company said it bought U.S.-based Pedinol Pharmacal Inc. for about $27 million.
In currency trading, the Canadian dollar strengthened against its U.S. counterpart /zigman2/quotes/210561978/realtime/sampled USDCAD +0.7488% , with one U.S. dollar buying C$0.9948 from C$1.0027 late Wednesday.