Canadian shares advanced, halting a two-day slump, as a rise in crude prices lifted energy producers.
The resource-heavy benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 0.6% to 13,430.90 at 11:09 a.m. in Toronto. Three shares advanced for every issue that declined as all of the 10 share groups were in positive territory.
The energy sector, the main index's second most heavily weighted group, was the largest advancer with a 1.6% gain.
Suncor Energy (TSE:SU), Canada's largest oil sands producer, added 0.5% to C$33.77.
Canadian Natural Resources Limited (TSE:CNQ), Canada’s second-largest energy producer, rose 2.4% to C$26.71.
Penn West Petroleum (TSE:PWT) climbed 9.1% to $0.72 after the Canadian senior oil producer said it would sell its assets in Mitsue in Central Alberta for $192.5mln in cash to cut debt.
U.S. crude was trading 40 cents higher at $44.40. Oil prices rose on Tuesday, supported by the prospect of lower U.S. inventories and production.
The materials sub-index, which includes mining shares, rose 0.8% even as gold prices slipped on Tuesday on pressure from a firmer dollar.
Goldcorp (TSE:G), Canada’s largest gold miner by market value, added 0.7% to C$16.89. Barrick Gold (TSE:ABX), Canada’s second-largest gold miner, climbed 1.5%.
Dalradian Resources (TSE:DNA) fell 7.3% to $0.76. The gold producer said it plans to sell 43.8mln stock-warrant units at C$0.8, to raise C$35mln. Warrants are exercisable for one share at C$1.04 each. The gold company said net proceeds will be used to fund exploration and for general corporate purposes.
Gold for December delivery was recently down 0.2% at $1,105.60 a troy ounce on the Comex division of the New York Mercantile Exchange.
Financials, the index's most heavily weighted sector, gained 0.6%. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, rose 0.6% to $73.04. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, edged up 0.2% to C$51.76.
Performance Sports Group (TSE:PSG) rose 1.1% to C$17.37, reversing an earlier loss. The sports-equipment maker said its former chairman, W. Graeme Roustan, has started a proxy battle to regain a seat on the Exeter, New Hampshire-based company’s board.
Savaria (TSE:SIS) rose 4.7% to $5.59. The maker of personal-mobility equipment such as wheelchair lifts said it has increased its quarterly dividend by 25%, to C$0.05.