Canadian Stocks Rise as Oil Prices Rebound; Energy Shares Gain

Canadian stocks rose, rebounding from their biggest loss in more than three months, as oil prices turned higher. Energy shares including Suncor Energy Inc. gained.

Technology shares got a boost as Research In Motion Ltd. resumed its rally and closed at a record.

The Standard & Poor’s/TSX Composite Index added 91.99, or 0.8 percent, to 11,618.12, its sixth advance in eight days. Crude oil’s dip below $59 a barrel yesterday sent the benchmark index down 2.2 percent, the biggest one-day drop since June 13.

Today, a measure of oil companies rose 1.3 percent, the second-biggest increase among 10 groups in the S&P/TSX after computer-related stocks. Even with the gain, energy shares are down 14 percent since July 14, when oil futures reached a record $78.40 a barrel.

Canadian energy companies “still make good money,” said David Cockfield, who helps manage $1.1 billion at Leon Frazer & Associates Inc. in Toronto. “The price of oil at $75 was definitely too high, but supply-demand supports oil at $60 to $65.”

Crude oil for November delivery rebounded from a seven- month low to close up 1.2 percent at $59.41 in New York as an accident occurred at a Valero Energy Corp. refinery in Houston and a government report showed that U.S. refineries are operating at the lowest rate since May.

Suncor, the world’s largest oil-sands producer, climbed C$2.52 to C$76.41. EnCana Corp., Canada’s biggest natural-gas producer, rose 86 cents to C$49.95.

Research In Motion Climbs

Research In Motion rallied C$7.78 to C$122.18. The maker of the BlackBerry handset on Sept. 28 reported a larger-than- expected 27 percent jump in second-quarter profit, while its forecast of 800,000 new customers this quarter topped analysts’ estimates.

Analysts including Deutsche Bank Securities Inc.’s Brian Modoff upgraded the stock and others raised their price targets following the results. Since then, Research In Motion has surged 28 percent.

Technology shares advanced 2.6 percent as a group for the best performance among the S&P/TSX’s 10 industry gauges.

The following is a list of companies whose shares had unusual price changes in the Canadian market. Stock symbols are in parentheses after company names.

ACE Aviation Holdings Inc. (ACE/B CN), the owner of Air Canada, rose 58 cents, or 1.7 percent, to C$35.71. UBS AG analyst Fadi Chamoun raised the stock’s price target to C$37 from C$33, citing the increase in value of Aeroplan Income Fund, the airline’s customer-rewards program.

Brookfield Asset Management Inc. (BAM/A CN) climbed 54 cents, or 1.1 percent, to C$49.59. The real estate investor said it paid $460 million to buy 33 U.S. commercial properties from affiliates of JPMorgan Chase & Co.

Calfrac Well Services Ltd. (CFW CN) gained C$1.09, or 5.5 percent, to C$21. Shares of the oilfield-services company were lowered to “sector perform” from “outperform” by analyst Angela Guo at RBC Capital Markets.

Canadian Pacific Railway Ltd. (CP CN) added C$1.38, or 2.5 percent, to C$56.65. Mike Lambert, co-president of the Mark’s Work Wearhouse unit of Canadian Tire Corp. (CTC CN) was named finance chief at Canadian Pacific.

Canadian Tire, the country’s biggest retailer of auto parts and household goods, fell C$3, or 2.7 percent, to C$107. Paul Wilson, the unit’s other co-president since 2003, will be president when Lambert leaves.

Coolbrands International Inc. (COB/A CN) sank 21 cents, or 33 percent, to 43 Canadian cents. The company, which makes Eskimo Pie ice-cream sandwiches, said it will be late in releasing its full-year earnings statement because of “liquidity constraints.” The company may cut jobs and sell business units or assets to raise cash.