Canada’s main stock index extended its new year rally into a third day on Thursday, as gold miners and other materials stocks rose with higher commodity prices and telecom stocks also notched gains.
The Toronto Stock Exchange’s S&P/TSX composite index ended the day up 69.83 points, or 0.45 percent, at 15,586.58, within striking distance of its all-time high of 15,685.13, which was hit in September 2014.
“I think the markets can grind higher from here,” said Manash Goswami, portfolio manager at First Asset Investment Management. “I’m a little more constructive than I had been last year,” he added.
The most influential movers on the index included two of the world’s largest gold producers, with Barrick Gold Corp jumping 5.6 percent to C$23.02 and Goldcorp Inc up 4.1 percent to C$19.78.
Torex Gold Resources surged 21.4 percent to C$26.75 after announcing high-grade results from exploration drilling close to existing operations and Alamos Gold Inc jumped 14.4 percent to C$11.37 after saying its Kirazli project in Turkey gained government permits, allowing development to begin.
The materials group, which includes precious and base metals miners and fertilizer companies, added 3.8 percent.
A slew of smaller gold miners also gained as gold prices jumped to a one-month high, but Goswami said further gains may be limited by a likely extension of U.S. dollar strength.
“We’re not super bullish on gold equities at the moment just given that we see further rate hikes from the Fed and continuous strength in the U.S. dollar so we expect gold to lag,” he said.
Telecom stocks rose 0.8 percent overall, with Telus Corp up 1.6 percent at C$44.20 and Rogers Communications Inc adding 0.9 percent to C$52.67.
The energy group retreated 0.6 percent even as oil prices rose after Saudi Arabia started talks with customers about a reduction in crude sales to support a plan by OPEC to lower global supply.
Penn West Petroleum Ltd advanced 3.7 percent to C$2.53 after it raised its 2017 capital budget and upped its production forecast.
The value of Canadian equity issues rose to an all-time high in 2016, driven by large deals in the energy and mining sectors, according to Thomson Reuters data released on Thursday.
Canadian producer prices increased by 0.3 percent in November from October on higher costs for vehicles and primary non-ferrous metal products, Statistics Canada said.
Kinross Gold Corporation (KGC) ended last trading session with a change of -3.18 percent. It trades at an average volume of 15.25M shares versus 12.13M shares recorded at the end of last trading session. The share price of $3.35 is at a distance of 155.73 percent from its 52-week low and down -42.44 percent versus its peak. The company has a market cap of $4.37B and currently has 1.3B shares outstanding. The share price is currently 5.53 percent versus its SMA20, -2.44 percent versus its SMA50, and -22.48 percent versus its SMA200. The stock has a weekly performance of 2.45 percent and is 7.72 percent year-to-date as of the recent close.
Valeant Pharmaceuticals International, Inc. (VRX) recently recorded -2.67 percent change and currently at $15.29 is 17.62 percent away from its 52-week low and down -85.57 percent versus its peak. It has a past 5-day performance of 8.06 percent and trades at an average volume of 18.41M shares. The stock has a 1-month performance of -2.18 percent and is 5.3 percent year-to-date as of the recent close. There were about 333.5M shares outstanding which made its market cap $5.1B. The share price is currently 4.45 percent versus its SMA20, -8.69 percent versus its SMA50, and -36.9 percent versus its SMA200.