Canada Stocks Rise a Second Day as Housing Starts Top Estimates

Aug 11, 2014 4:33 pm ET

Aug. 11 (Bloomberg) -- Canadian stocks rose a second day as data showed housing starts beat economists’ estimates and tensions eased in the Middle East and Europe.

Tekmira Pharmaceuticals Corp., which is developing an experimental Ebola treatment, jumped 12 percent as the World Health Organization holds a panel today discussing the drugs for the ongoing outbreak in West Africa. Painted Pony Petroleum Ltd. and Pacific Rubiales Energy Corp. added at least 2.2 percent to pace gains among oil producers.

The Standard & Poor’s/TSX Composite Index rose 65.33 points, or 0.4 percent, to 15,261.64 at 4 p.m. in Toronto. The benchmark equity gauge has climbed 12 percent this year, the second-best performer among the world’s developed markets behind Denmark.

Toronto-Dominion Bank, the country’s largest lender by assets, increased 1.6 percent to C$56.48, the most since May, and Brookfield Asset Management Inc. added 3.4 percent to C$50.97. The S&P/TSX Financials Index rose 0.7 percent. Canada’s housing starts rose 0.7 percent in July to a seasonally-adjusted annual pace of 200,098 units, the fastest since October. Economists had forecast a decline to 193,000.

Ebola Drug

Tekmira, surged 12 percent to C$25.84, highest since March 26. The drug developer has rallied 76 percent in the past three days as U.S. regulators said the company could possibly give its experimental Ebola drug to people infected with the deadly disease.

Painted Pony added 2.7 percent to C$12.32 and Pacific Rubiales increased 2.2 percent to C$21.82.

Israeli and Palestinian negotiators are resuming talks for a long-term agreement on the Gaza Strip after the two sides agreed yesterday to a 72-hour truce brokered by Egypt. Using fighter jets and drones, the U.S. destroyed several armed trucks and a mortar position held by Iraqi militants, the U.S. Central Command in Tampa, Florida, said yesterday.

Imperial Metals Corp. rallied 1.5 percent to C$10.52 for a second day of gains after the company said it doesn’t see any signs that a burst dam at its Mount Polley copper-and-gold mine will delay the start-up of another mine it’s developing elsewhere in the province.

The dam at Mount Polley, which had been holding mine waste, unleashed about 10 million cubic meters (2.64 billion gallons) of water and 4.5 million cubic meters of ground-up rock when it spilled on Aug. 4. Imperial Metals plunged 39 percent on Aug. 5.

Avigilon Corp. tumbled 7.7 percent to C$20.38, the lowest since May 28, for a third day of declines. The surveillance equipment maker reported worse-than-forecast second-quarter earnings on Aug. 7.