Canada Stocks Rise a Fourth Day to Rebound From Brexit Losses

(Bloomberg) -- Canadian stocks rose a fourth day as commodity producers jumped, rebounding from losses sustained in the wake of the U.K.'s shock vote to exit the European Union.

The S&P/TSX Composite Index climbed 1.4 percent to 14,258.87 at 4 p.m. in Toronto, the highest level since June 8. Canadian markets were closed Friday for Canada Day. Trading volume was 50 percent lower than the 30-day average with U.S. markets closed Monday for the Fourth of July holiday.

The Canadian benchmark has swung wildly along with global markets, rebounding 4.2 percent in four trading sessions after slumping the most since February in the two days after the Brexit vote. The S&P/TSX is neck-and-neck with New Zealand as the world's top-performing developed market in 2016, according to data compiled by Bloomberg. 

Raw-materials producers soared 4.3 percent to lead gains across nine of 10 industries in the S&P/TSX. Silver Wheaton Corp. and MAG Silver Corp. surged at least 6.8 percent as silver vaulted above $21 an ounce for the first time in two years. Royal Bank of Canada and Toronto-Dominion Bank increased more than 1.1 percent to lead the nation's largest lenders higher.

Commodity Producers

Raw-materials producers have led the charge for Canada with a 57 percent gain this year, the best year-to-date performance for the industry in at least 30 years, according to data compiled by Bloomberg. Gold prices are on track for the biggest annual increase since 2010.

Silver jumped as much as 7 percent to $21.1377 an ounce in London, while gold advanced to near a two-year high amid speculation of more central bank stimulus with traders now pricing in greater odds of a Federal Reserve rate cut than a hike.

Bank of England Governor Mark Carney is set to make his third appearance in 12 days on Tuesday to address threats facing the financial system, as he breaks open an emergency central bank toolkit to soothe markets roiled by the prospect of another crisis. Nigel Farage, a central figure in the successful “Leave” campaign, resigned as leader of the U.K. Independence Party in London Monday.

Gran Tierra Energy Inc. tumbled 6.9 percent, the most in almost a month, after agreeing on July 1 to buy PetroLatina Energy Ltd. in Colombia for $525 million in cash. The oil and gas explorer will pay for the deal through a combination of existing cash, debt and by issuing subscription receipts. Credit Suisse Group AG analyst David Phung suggests investors take a “wait and see” approach for Gran Tierra's well results.

To contact the reporter on this story: Eric Lam in Toronto at elam87@bloomberg.net. To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Steven Frank, Jacqueline Thorpe