Canadian shares climbed for a fourth session, as miners rallied with the price of bullion. The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 0.7 percent to 14,478.70 at 12:49 p.m. in Toronto. Two shares advanced for every issue that declined as half of the ten share groups were in the positive territory.
The materials sub-index, which includes mining shares, gained 2.4 percent as gold increased. Barrick Gold (TSE:ABX) fluctuated and was last down 0.3 percent at C$9.13. The second-largest said it had agreed to sell 50 percent of its Zaldivar copper mine in Chile to Antofagasta for $1 billion in cash, and to work with its new Chilean partner on maximizing the value of the mine. Goldcorp (TSE:G), Canada’s largest gold miner by market value, jumped 5 percent to C$17.28.
Gold increased 0.5 percent to 1,093.70 on Comex.
Financials, the index's most heavily weighted sector, gained 0.7 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, gained 0.9 percent to C$76.40. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, advanced 0.8 percent to C$53.08.
The energy sector, the main index's second most heavily weighted group, slid 0.2 percent as oil, Canada’s largest export, fell.
Suncor Energy (TSE:SU), Canada's largest oil sands producer, slipped 0.1 percent to C$36.77. Canadian Natural Resources Limited (TSE:CNQ), Canada’s second-largest energy producer, advanced 0.6 percent to C$31.85.
Canadian Oil Sands (TSE:COS), owner of the largest stake in closely held Syncrude Canada, slumped 5 percent to C$7.24, after reporting a net loss in the second quarter, citing lower prices for its crude and the effect of a two percentage point corporate tax hike in the Western Canadian province where it operates.
TransCanada (TSE:TRP) rose 1 percent to C$50.87 as the country’s second-biggest pipeline operator reported better-than-expected earnings and revenue for the second quarter, which it attributed to strong results from its three key businesses.
Imperial Oil (TSE:IMO) rose 0.7 percent to C$48.87, reversing an earlier loss. The integrated energy company posted a 90 percent drop in its second-quarter profit, dinged by a large charge for a tax-rate increase in Alberta, slumping global oil prices and in the absence of a year-earlier gain on the sale of an asset.
Brent was down 48 cents at $52.83 a barrel after settling $0.07 lower in the previous session. U.S. light crude was down $0.73 at $47.79 a barrel.
Gildan Activewear (TSE:GIL) tumbled 6.8 percent to C$42.54. The Canadian producer of cotton T-shirts to underwear reported a lower-than-expected profit for the second quarter and warned that adjusted earnings for the year are now expected to come in at the bottom of its previous guidance range of $1.50 to $1.55 a share.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) rose 0.4 percent to 590.44 at 12:29 p.m. in Toronto.
In economic news, Canadian gross domestic product fell 0.2 percent in May, bringing the decline since the start of the year to 0.8 percent as the economy struggled with plunging oil prices. Economists surveyed by Bloomberg projected no change in May output. The five-month decline is the longest slump since the 2008-2009 recession.
In the U.S. market, shares switched between small gains and losses, held in check by disappointing earnings from energy giants Exxon Mobil and Chevron. The S&P 500 (INDEXSP:.INX) rose 0.2 percent to 2,112.35 at 11:57 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) was flat at 17,753.30, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) gained 0.4 percent to 5,147.56. Most followed shares included LinkedIn, EA, FireEye, Exxon Mobil, Chevron, Royal Caribbean Cruises, Coca-Cola Enterprises, Expedia, Amgen, and Moneygram.