Canadian shares gained, paring a second weekly loss, as signs that hostilities are easing in Ukraine offset fears over crises in the Middle East and data showing national employers added fewer positions than anticipated.
Magna International Inc. added 6.5%, the largest gain in more than two years, after bolstering its sales projections. SNC-Lavalin Group Inc. lost 2.8% after profit for second quarter was lower than estimated by analysts following declining revenue. Enerflex Ltd., an oilfield services firm, climbed 10% as more bookings boosted its profits to more than what had been predicted, Bloomberg reported.
The Standard & Poor’s/TSX Composite Index advanced 77.88 points or 0.5% to 15,196.31 as of 4 p.m. in Toronto. The blue-chip index tumbled 0.1% in the week ended Jul. 8.
Stocks surged faster in afternoon session as Russia’s Defense Ministry said military aircraft had ended drills in the region near Ukraine as RIA Novosti earlier said Russia had offered to broker negotiations between government in Kiev and the insurgents it’s fighting.
US President Barack Obama gave nod to airstrikes in Iraq, as rocket attacks resumed at the end of a cease-fire between Israel and Hamas. Geopolitical developments are being watched by investors, for indications of slowing economic growth.
Canadian employers created 200 more jobs after a drop of 9,400 in May, while the nation’s jobless rate plunged to 7.0% as workers left the job market, a report by Statistics Canada showed on Friday. Economists had forecast a 20,000 jobs hike.
Magna added 6.5% to 122.24 Canadian dollars after posting better-than-expected profit and sales. The maker of auto parts also boosted its 2014 sales guidance.
“You might get a pullback, but generally the stock marketcan continue to do well. I think (it) has a lot of room to gohigher,” Paul Harris, of Avenue Investment Management is quoted by Reuters as saying.
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