Canadian shares rose more than 1% on Tuesday, buoyed by weak Chinese data that sparked speculation that Beijing would move to stimulate the world’s second-largest economy.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) gained 1.2% to 13,638.51 at 12:09 p.m. in Toronto. More than four shares advanced for every issue that declined as nine out of ten share groups were in positive territory.
Data showed on Tuesday that China’s exports fell 5.5% in August from a year earlier in dollar terms after a drop of 8.3% in July, according to the General Administration of Customs.
The TSX’s materials sub-index, which includes mining shares, added 1.8% as gold edges up after a four-day losing run. Goldcorp (TSE:G), Canada’s largest gold miner by market value, was flat at C$17.70. Barrick Gold (TSE:ABX), Canada’s second-largest gold miner, added 2% to C$8.67.
Spot gold was up 0.2 percent at $1,121.08 an ounce, U.S. gold futures for December delivery were down 80 cents an ounce at $1,120.60.
The energy sector, the main index's second most heavily weighted group, added 0.4% as oil benchmarks diverged on Tuesday.
Suncor Energy (TSE:SU), Canada's largest oil sands producer, edged up 0.2% to C$35.08. Enbridge (TSE:ENB), Canada's largest pipeline company, added 0.5% to C$53.93.
Husky Energy (TSE:HSE) rose 1.3% to C$22.36 after Canada's third-largest integrated oil producer started output from a second oil well at the South White Rose extension drill centre off the coast of Newfoundland and Labrador.
The U.S. oil benchmark recently fell 2.9% to $44.72 a barrel on the New York Mercantile Exchange.
Katanga Mining (TSE:KAT) fell 20% to C$0.160 after the operator of a major mine complex in Congo said it has started a review of its business, pointing to commodity-market conditions.
Concordia Healthcare (TSE:CXR) fell 8.8% to $100.84 as the Canadian firm announced it will acquire rare disease drug maker Amdipharm Mercury for about $3.5 billion.
Financials, the index's most heavily weighted sector, gained 1.1%. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, rose 1.5% to C$71.94.
Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, gained 1.4% to C$51.80.