Canada Stocks Rise as EnCana Gains on Earnings; Suncor Drops

By John Kipphoff

Oct. 23 (Bloomberg) -- Canadian stocks gained for the first time in three days, led by energy producers, after EnCana Corp. and reported earnings that beat analysts' estimates.

Gains among commodity stocks were limited as the prices of gold and copper fell and crude oil fluctuated after dropping to the lowest in 16 months. Suncor Energy Inc. fell after cutting its budget for spending on expansion.

The Standard & Poor's/TSX Composite Index rose 22.82, or 0.3 percent, to 9,259.70 at 9:56 a.m. in Toronto after dropping 5.7 percent yesterday. Canada's benchmark fell 21 percent in October before today, poised for its steepest monthly drop since 1987, on concern that more than $660 billion in credit losses, and a global economic slowdown, will destroy demand for the nation's commodity-related assets.

EnCana rose 2.5 percent to C$51.99. Canada's largest gas producer said third-quarter profit more than tripled to $3.55 billion, or $4.73 a share, from $934 million, after output increased and energy prices surged. Excluding such items as a $2 billion gain in the value of hedging contracts, profit was $1.92 a share, 15 cents higher than the average of 15 analyst estimates compiled by Bloomberg.

Petro-Canada gained 2.3 percent to C$26. The country's third-largest oil company said third-quarter profit rose 61 percent to C$1.25 billion, or C$2.56 per share, from C$776 million, on higher prices, beating analyst estimates. Petro- Canada was expected to earn C$2.29 per share, the average estimate of 15 analysts surveyed by Bloomberg.

Suncor slid 1.8 percent to C$25.99. The world's second- largest oil-sands producer trimmed its 2009 capital budget by 33 percent to C$6 billion ($4.8 billion) and slowed construction at its Voyageur project. In September, Suncor said it would raise 2009 spending to C$9 billion from an estimated C$7.5 billion this year.

Kinross Gold Corp., Canada's third-largest bullion mining company, dropped 3.1 percent to C$11.03.

To contact the reporter on this story: John Kipphoff in Montreal at jkipphoff@bloomberg.net.