Canada Stocks Rise on Gold Rally as Tim Hortons Jumps on Profit

Aug 06, 2014 4:33 pm ET

Aug. 6 (Bloomberg) -- Canadian stocks rose for the first time in four days, rebounding from a three-week low, as gold prices rallied amid rising tension in Ukraine and Tim Hortons Inc. jumped after sales surged.

Tim Hortons added 7.4 percent after reporting the highest same-store sales growth in the U.S. in two years. Agnico Eagle Mines Ltd. climbed 3 percent as gold advanced the most in six weeks. Canaccord Genuity Group Inc. sank 8.9 percent as earnings fell short of estimates. National Bank of Canada added 0.5 percent as lenders snapped a three-day losing streak.

The Standard & Poor’s/TSX Composite Index added 14.38 points, or 0.1 percent, to 15,202.09 at 4 p.m. in Toronto. The benchmark Canadian equity gauge closed at a record on July 30 and is the second-best performer among developed markets in the world this year with a 12 percent gain.

Materials producers jumped 0.9 percent as gold surged amid rising tension in Ukraine. NATO said there’s a risk of Russia sending troops into Ukraine under the “pretext” of a humanitarian or peacekeeping mission after President Vladimir Putin massed soldiers on his country’s western border.

Canada reported the largest merchandise trade surplus in more than two years in June as exports reached a record C$45.2 billion on gains in crude oil and metals. The surplus was C$1.86 billion, the highest since December 2011, Statistics Canada said in Ottawa. Economists forecast the trade account would be balanced.

Donuts, Banks

Tim Hortons rallied 7.4 percent to C$64.52, a record, as sales of frozen hot chocolate and crispy chicken sandwiches boosted profit and revenue ahead of estimates in the second quarter. U.S. same-store sales rose 5.9 percent, the most since the first quarter of 2012, according to data compiled by Bloomberg.

Canaccord Genuity slumped 8.9 percent to C$11.36, the biggest decline since April 2013. Excluding some items, Canaccord reported a 24 percent increase in expenses in the fiscal first quarter.

National Bank added 0.5 percent to C$48.38 and Canadian Imperial Bank of Commerce rose 0.4 percent to C$100.20 as the S&P/TSX Banks Index rallied 0.1 percent to erase earlier losses and snap a three-day slide.