Canadian shares advanced, led by energy producers and miners, as a retreat in the U.S. dollar helped lift commodity prices.
The resource-heavy benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 0.4 percent to 15,130.34 at 12:32 p.m. in Toronto. More than two shares advanced for every issue that declined as seven out of ten share groups were in the positive territory.
The materials sub-index, which includes mining shares, jumped 1.4 percent as gold edged higher in response to losses in the dollar after disappointing U.S. data.
Goldcorp (TSE:G), Canada’s largest gold miner by market value, gained 1.3 percent to C$22.49. Barrick Gold (TSE:ABX), the second-largest, rose 1.2 percent to C$15.00.
Alamos Gold (TSE:AGI) advanced 2.4 percent to C$8.19 as the producer of the metal in Mexico said a Turkish court overturned a lower-court ruling and reinstated the company’s Environmental Impact Assessment for the Kiralzi gold project. The ruling removes a “key permitting hurdle” for Alamos Gold’s Turkish portfolio, National Bank said.
Thompson Creek Metals (TSE:TCM) jumped 15.2 percent to C$1.33 after saying modifications made to mill operations at its Mount Milligan mine in British Columbia have resulted in improved throughput. Separately, Scotiabank raised its rating on the stock to sector perform from underperform.
Spot gold rose 0.3 percent to $1,193.03 an ounce, while U.S. gold futures for August delivery rose $5.00 to $1,193.30 an ounce.
The energy sector, the main index's second most heavily weighted group, gained 1.4 percent as oil, Canada’s largest export, was higher today.
Suncor Energy (TSE:SU), Canada's largest oil sands producer, rose 1.1 percent to C$36.32. Canadian Natural Resources Limited (TSE:CNQ), Canada’s second-largest energy producer, added 1.8 percent to C$38.76.
Light, sweet crude for July delivery recently traded up 0.7 percent to $60.62 a barrel on the New York Mercantile Exchange.
Financials, the index's most heavily weighted sector, rose 0.7 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, added 0.7 percent to C$79.38. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, increased 0.4 percent to C$54.42.
Air Canada (TSE:AC.B) jumped 5.6 percent to C$14.98 as the nation's largest airline raised its financial targets for the 2015-2018 period as a result of its improved financial position. The air carrier now projects a year-over-year return on invested capital of 13 percent to 16 percent, compared with its previous target of 10 percent to 13 percent.
Loblaw Cos. (TSE:L), Canada’s biggest grocery store chain, fluctuated and was last down 0.1 percent at C$63.00. Loblaw sold 38 properties to Choice Properties REIT (TSE:CHP.UN) for C$201.3 million in cash and Choice Properties units.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) was little changed at 691.03 at 12:32 p.m. in Toronto.
In the U.S. market, shares moved lower as concerns about Greece bailout talks continued to weigh on global equity markets. The S&P 500 (INDEXSP:.INX) slipped 0.2 percent to 2,108 at 11:50 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) lost 0.2 percent to 18,010, while the tech-heavy Nasdaq 100 (INDEXNASDAQ:NDX) surrendered 0.3 percent to 4,508. Most followed shares included PVH, Dollar General, Anheuser-Busch, Cracker Barrel, Fiat Chrysler, Intel, Apple, Youku Tudou, Medtronic, Plug Power, AIG, and FedEx.