Canadian Stocks Rise on Commodities; Suncor, Barrick Advance

Sept. 27 (Bloomberg) -- Canadian stocks rose for a fifth day, led by commodity producers Suncor Energy Inc. and Barrick Gold Corp., as prices of oil, gold and wheat gained, signaling that the companies' profits may grow. Banks also advanced.

Speculation that the Federal Reserve may again lower borrowing costs to boost the economy in the U.S., Canada biggest export market, helped lift stocks after a report showed that new home sales fell more than expected last month and prices dropped by the most since 1970.

``The tone is better. Markets are settling from the subprime volatility,'' said Greg Eckel, who helps manage the equivalent of $1.3 billion as a fund manager at Toronto-based Morgan Meighen & Associates. ``People are picking away. It's good to see it's pretty broad-based. We're also getting the impact of rate cuts and there may be expectations of more cuts creeping in.''

The Standard & Poor's/TSX Composite Index rose 94.76, or 0.7 percent, to 14,129.73 in Toronto. The benchmark, which fell as much as 12 percent from a July 19 record on concern tighter credit might tip the U.S. into recession, has recovered more than two-thirds of the lost ground.

The Reuter/Jefferies CRB Index advanced 1.4 percent as prices of 15 of 19 commodities it tracks increased. Crude oil rose more than $2 to $82.88 a barrel, the second-highest close ever, after the U.S. dollar fell to a record low against the euro, boosting commodities' appeal of as alternative investments.

The U.S. last year took 87 percent of Canada's exports, more than half of which consist of metals, natural gas and other resources. The Fed cut its key lending rate last week to keep a housing slump and credit market turmoil tied to subprime mortgages losses from worsening.

Suncor Energy, the second-largest oil-sands miner, rose C$2.17 to C$95.71. Talisman Energy Inc., which produces oil and gas in the North Sea, increased 25 cents to C$19.55. Canadian Natural Resources Ltd., the nation's second-biggest natural-gas producer, added 91 cents to C$75.20. Nexen Inc., another oil and gas company, gained 63 cents to C$30.53.

Gold Miners

Barrick Gold, the world's biggest bullion miner, climbed 58 cents to C$39.33. Kinross Gold Corp., Canada's third-largest producer of the precious metal, rose 29 cents to C$14.99. First Quantum Minerals Ltd., a miner of copper in Africa, added C$2.99 to C$95.06. Potash Corp. of Saskatchewan Inc., the biggest maker of fertilizer by market value, added C$1.03 to C$104.11.

Measures of materials and energy shares gained 1.2 percent and 0.8 percent, respectively. An index of financial shares added 0.6 percent. The three groups account for three quarters of the S&P/TSX's value. Seven of 10 sub-indexes in the S&P/TSX rose.

Toronto-Dominion Bank, Canada's third-biggest lender by assets, climbed C$1.13 to C$76.26, gaining for a fifth day. Canadian Imperial Bank of Commerce added C$1.29 to C$99.53. TD Bank and its smaller rival both gave presentations this morning at an investor conference in Mont-Tremblant, Quebec, sponsored by CIBC World Markets, Canadian Imperial's investment banking unit.

Bank of Nova Scotia climbed 50 cents to C$53. Canada's second- largest bank is negotiating to pay $200 million for Chilean bank Altas Cumbres' holdings in Banco del Trabajo in Peru, Banco de Antigua in Guatemala and Banco de Ahorro y Credito Altas Cumbres in the Dominican Republic, Chilean newspaper Diario Financiero reported, citing people it didn't identify in Peru.