(Bloomberg) – Canadian stocks rose for a second day as energy producers climbed after U.S. service industries expanded for a fifth straight month and initial jobless claims in the U.S. dropped.
Canadian Natural Resources Ltd., the country’s second- biggest energy company by market value, gained 2.4 percent as oil futures advanced for a second day. Regional lender Canadian Western Bank increased 3.7 percent after reporting quarterly earnings that beat the average analyst estimate. Barrick Gold Corp., the world’s largest gold producer, fell 1.3 percent as the metal declined on a stronger U.S. dollar.
The Standard & Poor’s/TSX Composite Index climbed 27.95 points, or 0.2 percent, to 11,808.62 at 10:39 a.m. in Toronto.
The S&P/TSX rallied the most in three weeks yesterday as energy prices rose after the U.S. National Association of Realtors reported more pending home resales than most economists forecast. The index is within 3.8 percent of its 2010 high reached in April, compared with a 9.7 percent gap for the S&P 500.
The Institute for Supply Management’s index of non- manufacturing businesses in the U.S. held at 55.4 for a third month, the Tempe-Arizona organization said today. Readings above 50 signal expansion.
First-time unemployment claims decreased by 10,000 to 453,000 last week, the U.S. Labor Department said.
Oil, Gas Prices
Crude oil gained 0.6 percent in New York to $73.27 a barrel, and earlier today advanced as much as 2.1 percent, the most in a week. Natural gas futures touched $4.50 per million British thermal units for the first time since March 11 after the U.S. energy department reported a smaller increase in inventories than most economists in a Bloomberg survey estimated.
Canadian Natural increased 2.4 percent to C$37.56 after Collins Stewart Plc analyst Katherine Lucas Minyard raised her rating on the company to “buy” from “hold,” citing the prospect of a narrower gap between the prices of heavy and light crude.
Heavy-oil project owner Petrobank Energy and Resources Ltd. climbed 3.8 percent to C$44.93. Enbridge Inc., Canada’s largest pipeline company, rallied 2.2 percent to C$48.98.
Canadian Western, the smallest of Canada’s eight publicly traded banks, rose 3.7 percent to C$24.36. The lender’s second- quarter profit surpassed the average of nine analyst estimates by 8.4 percent, excluding certain items.
Development Plans
Eastern Platinum Ltd., which mines in South Africa, led the S&P/TSX with an 8.5 percent jump to C$1.28 after updating its development plans. Production may reach 600,000 ounces a year, the company said.
Canadian Pacific Railway Ltd., the country’s second-largest railroad, surged 3.4 percent to C$60.12 a day after the company’s investor day in Calgary. CP Chief Executive Officer Fred Green said the company expects to reduce expenses as a percentage of revenue.
“If successful, we forecast the upside to earnings could be substantial,” Royal Bank of Canada analyst Walter Spracklin told clients in a note.
Canadian National Railway Co. gained 1.4 percent to C$61.99.
S&P/TSX gold companies fell for the first time this week as the U.S. dollar gained against the euro, yen, Canadian dollar and British pound, leading to lower gold prices. Barrick dropped 1.3 percent to C$44.22. Kinross Gold Corp., Canada’s third- largest producer of the metal, declined 1.1 percent to C$17.91.
Sandvine Corp., which makes network-management equipment for Internet service providers, surged 8.3 percent to C$2.08 after saying it has won nine new customers.
–Editor: Stephen Kleege, Joanna Ossinger
To contact the reporter on this story: Matt Walcoff in Toronto at mwalcoff1@bloomberg.net.
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

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