Jan. 25 (Bloomberg) -- Canadian stocks gained for the first time in four days as a slide in oil prices slowed and investors speculated last week’s tumble in equity prices was unwarranted.
Cenovus Energy Inc., the oil producer spun off from EnCana Corp. last month, added 1.4 percent as crude fluctuated after three days of losses. Potash Corp. of Saskatchewan, the world’s largest fertilizer producer, increased 1.8 percent after Credit Suisse Group AG recommended the stock. Bank of Nova Scotia rose 0.7 percent on an analyst upgrade.
The Standard & Poor’s/TSX Composite Index climbed 37.13 points, or 0.3 percent, to 11,380.56 at 10:31 a.m. in Toronto.
The S&P/TSX, which gained 31 percent in 2009 on record-low interest rates and record-high deficit spending globally, has fallen 4.7 percent since Jan. 11 in part on concern China will withdraw monetary stimulus. Last week, the index slumped the most since October as U.S. President Barack Obama called for limits on the size and trading activities of financial companies.
Energy stocks climbed after the chairman of Libya’s National Oil Corp. said Organization of Petroleum Exporting Countries members must improve their compliance with output quotas.
Cenovus rallied 1.4 percent to C$25.37 after losing 3.8 percent last week. Canadian Natural Resources Ltd., the country’s second-largest energy company by market value, gained 0.6 percent to C$70.24.
Rating Raised
Canadian Oil Sands Trust, part-owner of the Syncrude oil- sands project, rose 1.3 percent to C$28.71 after Bank of Nova Scotia analyst Mark Polak raised his rating on the company to “sector perform” from “sector underperform.”
Potash Corp. added 1.8 percent to C$117.40. Credit Suisse analysts said Potash Corp. and Russian producer Uralkali “are the best way to play improving potash fundamentals.” Potash prices should increase as demand for the nutrient recovers.
Scotiabank, Canada’s third-biggest bank, rose 0.7 percent to C$44.92 after analyst Sumit Malhotra of Macquarie Group Ltd. increased his rating on the stock to “neutral” from “underperform.” Malhotra told clients the stock’s 9.4 percent decline this month through yesterday has made it inexpensive considering its earnings and the share prices of other Canadian banks.
Toronto-Dominion Bank, which has 1,045 branches in the U.S., climbed 0.9 percent to C$62.30.
Insurer Kingsway Financial Services Inc. soared 18 percent to C$1.80 after agreeing to sell Jevco Insurance Co. to The Westaim Corp. in a deal Westaim valued at about C$263 million ($248 million).
Kingsway shares have sunk 39 percent since Nov. 16, when the Pennsylvania Insurance Department said it would take legal action against the company for what it called the improper divestment of its interest in Lincoln General Insurance Co.
To contact the reporter on this story: Matt Walcoff in Toronto at mwalcoff1@bloomberg.net
