The Toronto Stock Exchange's main index set a record closing high on Friday, powered by rising resource issues and merger speculation surrounding private-label soft drinks maker Cott Corp.
The S&P/TSX composite index closed up 78.97 points, or 0.6 percent, at 13,578.62, surpassing the previous record close of 13,499.65 set on Thursday. During the session the TSX touched a record high of 13,581.27, topping the previous intraday peak of 13,519.09 on April 9. The benchmark index was up 1.1 percent on the week, and is ahead 5.2 percent so far this year.
Overall, seven of the index's 10 main sectors were higher, led by a 2 percent jump in the resource-laden materials group and a 1.1 percent rise in the energy sector, which together make up about 40 percent of the index's total weight.
Shares of base and precious metal companies rose amid firmness in most underlying commodities. Potash Corp of Saskatchewan Inc jumped C$7.79, or 3.9 percent, to C$208.87, while zinc major Teck Cominco Ltd rose C$2.63, or 3.2 percent, to C$84.90.
Goldcorp Inc climbed C$1.08, or 3.7 percent, to C$30.16. In the energy sphere, stocks rose amid recent firmness in oil prices, which eased slightly to settle down 22 cents at $63.63 a barrel. Canadian Natural Resources Ltd was up C$1.55, or 2.3 percent, to C$68.25. "We've got the commodity complex working for us today," said Rick Hutcheon, president and chief operating officer at RKH Investments.
"I think a lot of these stocks really have gone through a period of consolidation over the last little while and I think they've gotten to a point where they're sufficiently attractive enough again that the managers want to step in and pick away at some of them."
More merger fever further helped to buoy the market. Shares of Cott soared C$3.72, or 25.3 percent, to C$18.44 after it said it has responded to interested parties that have approached it after Cadbury Schweppes Plc announced it would split its confectionery and Americas beverage businesses.
Shares of Cott were halted before markets opened on Friday after the Wall Street Journal said the company was in talks with private equity firms about merging operations with Cadbury Schweppes' beverage arm.
The buoyancy in the market suggests that the merger wave is "alive and well," said George Vasic, equity strategist at UBS Securities Canada, noting: "It basically boils down to continued foreign interest in Canadian stocks."
Also on the merger front, shares of Agricore United, Canada's largest grain handler, jumped C$3.12, or 19 percent, to C$19.53 after it said it had received a sweetened take-over offer from Saskatchewan Wheat Pool, and gave rival suitor James Richardson International Ltd until April 20 to match or beat it.
Saskpool slipped 52 Canadian cents, or 5.7 percent, to C$8.54. Shares of Magna International Inc fell 38 Canadian cents, or 0.4 percent, to C$87.13 after it confirmed on Friday its involvement in a possible deal for DaimlerChrysler's Chrysler division. CanWest Global Communications Corp, Canada's biggest media company, rose 8 Canadian cents, or 0.7 percent, to C$11.50 after it said it returned to profit in the second quarter, thanks to growth in its television operations in Canada and Australia.
Market volume totalled 395 million shares worth C$6 billion. Advancers outpaced decliners 964 to 638. The blue chip S&P/TSX 60 index closed 4.40 points higher, or 0.57 percent, at 776.80. South of the border, the Dow Jones industrial average rose 59.17 points, or 0.5 percent, to 12,612.13, while the Nasdaq composite index ended up 11.62 points, or 0.5 percent, at 2,491.94.
Comments
Comments are closed.