Canadian stocks rose, heading for a weekly gain, as financial and telecommunications companies advanced after Canadian and U.S. exports increased and BCE Inc. boosted its quarterly dividend.
Toronto’s S&P/TSX composite index greeted the closing bell 72.23 points stronger to end the week at 13,239.47.
BCE, Canada’s biggest phone company, advanced 2.9% after raising its dividend by 7.7%. First Quantum Minerals Ltd., the country’s second-largest publicly traded copper producer, climbed 9.6% to $118.94 as China’s imports rose to a record. Manulife Financial Corp., North America’s fourth-largest insurer, surged 5.7% to $16.89.
The main Toronto index is performing better than the S&P 500 for the seventh straight year, boosted by raw-material producers. The growth of the Chinese economy helped spur copper to a 22% gain through yesterday, while concern over the safety of government debt led gold to a 26% jump.
Chinese imports rose 38% last month from November 2009, the country’s customs bureau said today. China is the world’s biggest user of industrial metals.
Elsewhere among financials, Power Corp. of Canada climbed 1% to $27.90. National Bank of Canada, the country’s sixth-largest bank, rose 1% to a record $70.22.
In the base metals sector, Teck Resources Ltd., climbed 4.1% to $57.90.
Among gold stocks, Goldcorp Inc., the world’s second- largest gold producer by market value, declined 0.6% to $46.50. Silver reseller Silver Wheaton Corp. nipped up 0.1% to $38.88 after falling as much as 2.3%.
Harry Winston Diamond Corp. sank 13% to $12.62 after lowering its 2010 production estimate by 12%. The company also forecast 2011 production 31 percent below the estimate of Bank of Montreal analysts.
BCE, the parent of Bell Canada, rose 2.9% to a 24-month high of $36.09 after boosting its quarterly dividend to 49.25 cents a share. The company also increased its 2010 profit forecast by 1.8%, to reflect a tax deduction for a $750-million voluntary pension contribution.
Forzani Group Ltd. jumped 11.8% to $17.64 and surged as much as 12%, the most intraday since May 2009. Canada’s largest sporting-goods retailer reported third-quarter earnings that beat the average analyst estimate by 12%, excluding certain items. The company also said same-store sales gained 16% in the first five weeks of the fourth quarter from a year earlier.
The Canadian dollar moved higher against its U.S. counterpart amid data showing Canada’s trade deficit with the rest of the world narrowed sharply during October, falling to $1.7 billion from $2.3 billion in September. The loonie rose 0.11 of a cent to 99.07 cents U.S.
On the economic front, Statistics Canada said this country’s merchandise exports rose 3.1% in October, on the strength of industrial goods and materials, as exports of precious metals and copper ores reached record highs. Imports increased 1.2%, led by energy products.
ON BAYSTREET
The TSX Venture Exchange progressed 15.31 points to 2,124.30, while the Nasdaq Canada index added 10.32 points to 770.60
In Toronto, all 14 subgroups made headway on the day. Metals and mining led the pack, ahead 2.9%, followed by global base metals, up 1.6%, while health-care stocks gained 1.2%.
ON WALLSTREET
In New York, equities edged higher Friday as investors responded to a surprise drop in the U.S. trade gap, while China announced another move aimed at cooling its red-hot economy.
The Dow Jones Industrials surged 40.26 points to end the day and week at 11,410.30
The S&P 500 moved up 7.40 points to 1,240.40. The Nasdaq Composite Index gained 20.87 points to 2,637.54.
The modest advance came after government data showed that the U.S. trade deficit unexpectedly narrowed in October, reaching its lowest level in nine months. A separate report on consumer sentiment also came in better than expected.
The trade data suggests that U.S. economic growth in the fourth quarter might be stronger than expected, according to some experts.
But gains were tempered by news that China's central bank further hiked its reserve requirement ratio for banks. The move was part of an effort to cool inflation and avoid an economic crash landing, officials said.
It also came after government data showed that China's trade surplus fell 16% in November, as exports surged 35% from the prior month.
The S&P 500 is shaking up the contents of its broad-market index. F5 Networks Inc., Netflix Inc., and Newfield Exploration Co. will replace The New York Times Co., Office Depot Inc. and Eastman Kodak Co. Cablevision Systems Corp. is taking the place of King Pharmaceuticals Inc., but only because King Pharmaceuticals has agreed to be acquired by Pfizer
GE was the biggest gainer on the Dow, rising 3% after the conglomerate boosted its quarterly dividend 17% to 14 cents per share. JPMorgan, Verizon and United Technologies were also strong.
But consumer stocks Kraft Foods and Coca Cola dragged on the index.
GE announced plans to pay a fourth-quarter dividend of 14 cents U.S. per share, up from 12 cents U.S., and said it expects to make "opportunistic share repurchases" next year.
Community Health Systems announced Thursday that it has made an offer to acquire smaller rival Tenet Healthcare for $6 U.S. per share, a premium of 40% over Tenet's closing stock price Thursday. An initial offer to Tenet was rejected and this is Community Health Systems' second attempt.
Shares of Community Health Systems rose 16%, while shares of Tenet Healthcare surged 54%.
Green Mountain Coffee reported fourth-quarter net income of $27 million U.S., or 20 cents U.S. per share, in line with expectations. But shares fell 12% as investors responded to the company's outlook and decision to no longer provide specific guidance about its K-Cup sales.
Earlier in the week, investors cheered as Washington appeared close to reaching a compromise deal to extend Bush-era tax cuts for another two years. But House Democrats voted Thursday against considering the tax package, which would also provided for extended unemployment benefits and a break in payroll taxes.
Investors are mostly confident that some tax rate compromise will be passed.
Economically speaking, the U.S. trade gap narrowed by nearly $6 billion U.S. in October to $38.7 billion U.S., the Commerce Department said. The report was a surprise, as economists had expected the trade gap to have widened to $44.5 billion U.S. in October from $44 billion U.S. the previous month.
The decline brought the U.S. trade deficit to a nine-month low, as exports jumped 3.2% to $158.7 billion U.S., the highest since August 2008, and imports fell 0.5% to $197.4 billion U.S.
The University of Michigan/Reuters index of consumer confidence for early December rose to 74.2 from 71.6 last month. Economists had expected a more modest increase to 72.5, according to consensus estimates from Briefing.com.
The price on the benchmark 10-year U.S. Treasury dipped, raising the yield to 3.30% from Thursday’s 3.22%. Treasury prices and yields move in opposite directions.
Oil stepped back 46 cents a barrel to $87.82 U.S.
Gold futures for February delivery fell $6.40 to settle at $1,386.40 U.S. an ounce.
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