Sept. 30 (Bloomberg) -- Most Canadian stocks rose and the main equity index completed a second consecutive quarterly gain as raw-material producers climbed with gold and copper prices. Gammon Gold Inc. and Equinox Minerals Ltd. climbed more than 5 percent as bullion prices jumped the most in almost four weeks. National Bank of Canada led declines among financial shares after a report Canada’s economy stalled in July and an unexpected contraction in the U.S. business purchasing index. Seven stocks rose for every four that fell as the Standard & Poor’s/TSX Composite Index slipped 0.03 point to 11,394.96 at 4:10 p.m. in Toronto. The benchmark added 9.8 percent in the quarter, extending a 19 percent rally from the previous three months, as earnings from companies including National Bank topped estimates and U.S. reports such as home sales suggested the world’s biggest economy is pulling out of the worst recession since World War II. “The last quarter was validation the economy was stabilizing and starting to improve,” said Jennifer Radman, who helps oversee about C$1 billion at Caldwell Investment Management Ltd. in Toronto. “Our market is reflective of that, so it’s done very well.” The index stopped updating for 30 minutes in the afternoon due to “technical difficulties,” Standard & Poor’s said. Gammon Gold climbed 5.9 percent to C$9.16. Gold and silver prices rallied as the dollar slid, sparking demand for the metals as alternative investments. Silvercorp Metals Inc. jumped 6.3 percent to C$5.10. Copper Miner Equinox, owner of Africa’s biggest copper mine, increased 5.2 percent to C$3.46 as the price of the metal rose the most in five weeks. The S&P/TSX fell as much as 1.3 percent earlier after the Institute for Supply Management-Chicago Inc. said its business barometer decreased to 46.1, lower than the most pessimistic forecast, from a reading of 50 in August. Readings below 50 signal a contraction. Companies cut payrolls by 254,000 jobs in September, according to ADP Employer Services, more than economists estimated. In Canada, gross domestic product was unchanged in July, marking the 11th month in the past year in which the economy either contracted or didn’t grow. Economists expected a gain of 0.5 percent, according to the median estimate of 21 analysts surveyed by Bloomberg. is pulling out of the worst recession since World War II. “It looks like the economy is not picking up as fast as people were hoping,” Blair Falconer, a portfolio manager who helps oversee $18 billion at HSBC Securities Canada Inc., said. National Bank, the country’s best-performing bank stock this year, slipped 1.5 percent to C$59.54. Canadian Imperial Bank of Commerce lost 0.8 percent to C$65.29. Westshore Drops Westshore Terminals Income Fund fell the most since July 8, sliding 6 percent to C$12.33. The operator of a coal storage and loading terminal in British Columbia was cut to “sector perform” from “outperform” by RBC Capital Markets. Vector Aerospace Corp. dropped 8 percent to C$6.35 for the biggest decline since December. The aircraft-servicing company said a partial insider bid by I.M.P. Group to buy up to 6 million common shares at C$6.52 each isn’t “in the best interests” of the company, and it is exploring alternatives to the offer. Vector also said that it would sell 7.1 million common shares for C$6.35 each, raising money to pay debt. Progress Energy Resources Corp. jumped 12 percent to C$13.82, the highest price since November. The Calgary-based natural-gas company said a well drilled in the Montney formation in British Columbia produced at a rate of 10 million cubic feet a day. Canadian Apartment Properties Real Estate Investment Trust rose 2.9 percent to C$14.75, the highest level since January. The owner of properties in Toronto, Montreal and Vancouver said it appointed Richard Smith, formerly of MI Developments Inc., as chief financial officer upon the retirement of CFO Yazdi Bharucha. To contact the reporter on this story: Lu Wang in New York at lwang8@bloomberg.netJeff Kearns in New York at jkearns3@bloomberg.net

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