TORONTO: Canada's main stock index climbed slightly on Tuesday as gains in materials and energy shares helped offset weakness in the financial sector.
Providing further support was a rise in shares of Valeant Pharmaceuticals International Inc after the drugmaker said its sweetened takeover offer for Allergan Inc would not be an all-cash bid as was expected.
Opening after a long weekend, the Toronto stock market advanced after recording declines in the previous three sessions. It is up 6.7 percent so far this year.
"We really are in the trading range of the market. There is very little volatility," said John Ing, president of Maison Placements Canada, who suggested that investors be cautious.
"In the backdrop, there still is the threat of higher (interest) rates, sinking currencies and geopolitical tensions," he added.
Market valuations are on the high side, and the TSX could go lower from here, Ing said.
The Toronto Stock Exchange's S&P/TSX composite index was up 25.67 points, or 0.18 percent, at 14,540.41. Seven of the 10 main sectors on the index were higher.
The materials sector, which includes mining stocks, rose 0.3 percent, helped by higher commodity prices. Barrick Gold Corp added 0.8 percent to C$18.20, and Teck Resources Ltd climbed 0.7 percent to C$24.81.
Shares of energy producers were up despite a decline in the price of oil. Encana Corp jumped 1.3 percent to C$24.93.
But financials, the index's most heavily weighted sector, gave back 0.3 percent. Royal Bank of Canada slipped 0.4 percent to C$72.54, and Bank of Montreal lost 0.4 percent to C$74.50.
Valeant rose 1.6 percent to C$139.77, helping to push up the index's healthcare sector.
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