Canadian shares extended their rally for a third day as oil rocketed more than 6 percent higher and the U.S. economy grew more than forecast amid a relief climb in global stocks.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) climbed 2.8% to 13,749.59 at 12:09 p.m. in Toronto. Twenty-three shares advanced for every issue that declined as all of the ten share groups were in the positive territory.
The energy sector, the main index's second most heavily weighted group, jumped 6.5%. Suncor Energy (TSE:SU), Canada's largest oil sands producer, gained 4.9% to C$36.22. Enbridge (TSE:ENB), Canada's largest pipeline company, added 3.5% to C$52.88.
Brent's front month futures contract rose $3.05 to $46.19 a barrel. U.S. crude's front-month rose $2.80 to $41.40, after an intraday peak at $41.64.
The materials sub-index, which includes mining shares, climbed 3.2% even as gold prices pulled back Thursday.
Goldcorp (TSE:G) inched up 0.9% to C$17.62. Canada’s largest gold miner by market value announced a deal with New Gold Inc. to gain full ownership of the El Morro copper-gold project in Chile and then combine El Morro with Teck Resources Ltd.’s nearby Relincho asset into a single $3.5 billion project.
Barrick Gold (TSE:ABX), Canada’s second-largest gold miner, gained 2% to C$8.89.
The most actively traded gold contract, for December delivery, was recently down 0.5% at $1,119.40 a troy ounce on the Comex division of the New York Mercantile Exchange.
Financials, the index's most heavily weighted sector, rose 1.9%. Royal Bank of Canada (TSE:RY), the company with the highest weighting in the index, increased 2.2% to C$73.70.
Toronto-Dominion Bank (TSE:TD) increased 1.1% to C$52.37 Canada’s second-largest lender by assets posted a higher-than-expected 7.5% increase in its fiscal third-quarter profit, buoyed by stronger Canadian and U.S. retail banking.
Canadian Imperial Bank of Commerce (TSE:CM) jumped 5.1% to C$94.93. Canada’s fifth-largest lender by assets reported higher-than-expected profit in its fiscal third quarter, aided by growth in its retail and wealth management businesses, and lifted its quarterly dividend.
In the U.S., stocks surged a second day, erasing a weekly loss, buoyed as China showed signs that measures to stabilize its economy and stock market may be taking hold.