(MENAFN- ProactiveInvestors) Canadian shares increased for a third day stretching a two-month high as banks and energy producers rallied with investors cheering moves by the and the European Central Bank earlier this week.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) added 0.4 percent to 14829.01 at 12:40 p.m. in Toronto. Almost two shares advanced for every stock that declined with six out 10 share groups gaining. The 250-company benchmark gauge for Canadian equities (TSE:OSPTX) has increased 1.4 percent so far this year.
The energy sector the main index's second most heavily weighted group was the biggest advancer with a 2.1 percnet rally. Energy (TSE:SU) Canada's largest oil sands producer rose 1.6 percent to C$37.64. Limited () Canada’s largest independent energy company picked up 1.7 percent to C$36.83.
WTI for March delivery fell 0.2 percent to $46.21 a barrel at 11:30 a.m. on the New York Mercantile Exchange. Brent crude for March settlement advanced 0.7 percent to $48.88 a barrel on the ICE Futures Europe exchange after climbing to $49.80.
The financials group which accounts for approximately 34 percent of the main measure more than any other group added 1.2 percent. The group rose for a third day after the cut its key lending rate.
() which has the heaviest weighting in the index rose 2.2 percent to C$76.33. Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value climbed 1.6 percent to C$52.67.
Carfinco Financial Group () jumped 11.3 percent after saying it has agreed to sell its Persian Acceptance Corp. business in the U.S. which is a condition of Banco Santander (NYSE:SAN) previously announced friendly C$298 million takeover of the Canadian non-traditional auto lender.
() edged up 0.8 percent to C$65.04 after saying it has agreed to acquire the other 50 percent of its Canadian and Australian facilities management businesses from () for about $200 million.
First Capital Realty () declined 2.2 percent to C$19.63 after saying it plans to sell 3.8 million shares at C$19.80 each to raise C$75 million.
The materials sub-index which includes mining shares fell 2.3 percent as gold fell the most this year. (TSE:G) Canada’s largest gold miner by market value surrendered 1.4 percent to C$29.61. (TSE:ABX) the second-largest declined 2.6 percent to C$15.46.
(TSE:IMG) tumbled 6.2 percent to C$3.62 after National Bank downgraded the producer of gold in Suriname and Burkina Faso to sector perform. National Bank said fourth-quarter operational results and 2015 guidance were largely in line but thinks “broader valuation-driving tailwinds” have eased. Separately the Toronto-based miner said late Thursday that a rock burst at its Westwood mine in Quebec caused an underground collapse but no employees were injured and production continues uninterrupted.
Gold futures for February delivery declined 0.8 percent to $1290.20 at 11:06 a.m. on the Comex in New York.
Hudson’s Bay () skidded 1.9 percent to C$23.94 after saying a unit of Ontario Teachers’ Pension Plan plans a secondary offering of 426000 shares at C$23.60 each. The shares represent about a 13.9 percent stake and will leave the shareholder with about a 16.8 percent interest in the retailer.
The junior () slid 0.4 percent to 676.52 at 12:20 p.m. in Toronto.
In economic news Canadian inflation slowed to 1.5 percent in December as cheaper gasoline countered accelerating prices on most other items reinforcing Governor Stephen Poloz’s argument the economy needs lower interest rates. The core inflation rate which excludes eight volatile products such as energy quickened to 2.2 percent from November’s 2.1 percent pace Statistics Canada said today from Ottawa.
Meanwhile Canadian Finance Minister Joe Oliver said he won’t pressure the nation’s banks to follow the ’s latest interest-rate cut or take steps to influence the housing market.
In the U.S. market shares seesawed as downbeat results from countered optimism central-bank stimulus will raise global growth. The S&P 500 (INDEXSP:.INX) slipped 0.1 percent to 2060.24 at 11:49 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) skidded 0.3 percent to 17769.09 and the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) gained 0.2 percent to 4760.92. Most followed shares included International Deere McDonald’s Kimberly-Clark DreamWorks Animation and Bank of New York Mellon.
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