Canadian Raw Materials Stocks Rise as Commodity Prices Climb

Date: Monday, July 5, 2004

(Bloomberg) -- Canadian raw materials stocks rose, led by producers such as EnCana Corp. and Teck Cominco Ltd., as commodity prices climbed in London trading. ``The Canadian market is largely about gold, gas and oil,'' said Steven Gold, who helps manage the equivalent of $250 million for Toronto's Leeward Hedge Funds. ``People are bullish about those commodities, so we'll see foreign money coming into our market to buy those stocks.'' The Standard & Poor's/TSX Composite Index was little changed, up 2.5 to 8489.81 by 9:40 a.m. in Toronto. The index has advanced 3.3 percent this year, helped by a 9.1 percent jump by oil-and-gas stocks. Raw-materials producers, including miners of gold and copper, have slumped 5.9 percent since Jan. 1 after climbing last year. Less trading is expected today at markets such as the Toronto Stock Exchange and the London Metal Exchange because U.S. markets are closed for the Independence Day holiday. Crude oil futures rose 50 cents to $36.42 a barrel in London trading as Iraqi exports were cut by half for a third day after a pipeline ruptured Saturday. Iraq is the Middle East's fifth- largest oil-producing nation. Natural gas prices also rose in the U.K.