Canadian shares advanced on Monday, driven by gains in all major groups, after oil, the country's largest export, climbed above $98 and as investors weighed prospects for less economic stimulus ahead of this week’s U.S. Federal Reserve policy meeting.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 1 percent to 12,305.13 at 11:11 a.m. in Toronto. Three shares advanced for every stock that fell.
Energy, the main index's second most heavily weighted sector, added 1.4 percent as oil, Canada’s largest export, climbed for a fourth day. Bankers Petroleum Ltd. (TSE:BNK) picked up 5.1 percent to C$2.89 and Penn West Petroleum Ltd. (TSE:PWT) added 2.2 percent to C$11.73.
Talisman Energy Inc. (TSE:TLM), the oil and natural gas producer focused on the Americas and Southeast Asia, increased 2.2 percent to C$11.89 after Lundin Petroleum AB began drilling in a field co-owned by the two companies in the North Sea.
Financials, the main measure's most heavily-weighted sector, gained 1.1 percent, as all of the ten industries rallied.
Brookfield Asset Management Inc. (TSE:BAM.A), which last year took over Thakral Holdings Group in Australia, rose 2.6 percent to C$36.88. The Toronto-based company said it’s selling Longview Timber to Weyerhaeuser Co. (NYSE:WY) for $2.65 billion including debt. Longview Timber holds about 645,000 acres of timberlands in the U.S. Pacific Northwest. Brookfield said that, after repayment of debt and distribution of proceeds to private fund investors, it will get net cash proceeds of about $600 million. In addition, its Brookfield Infrastructure Partners LP affiliate will get net proceeds of about $470 million.
Bombardier Inc. (TSE:BBD.B), the world's third largest commercial aircraft maker, edged up 0.2 percent to C$4.69 after it confirmed European startup Odyssey Airlines as the buyer in a C Series order previously announced two years ago. London-based Odyssey is the previously undisclosed customer for 10 Bombardier CS100 aircraft, valued at $628 million, the Montreal, Quebec-based company said in a statement on Monday at the Paris Airshow. The firm order was first announced in June 2011.
Rogers Communications Inc. (TSE:RCI.B) rallied 1.2 percent to C$45.91 after an analyst with Canaccord Genuity Inc. lifted his rating for the stock.
Transition Therapeutics Inc. (TSE:TTH), a Toronto-based drugmaker, fell 1.6 percent to C$2.59 after saying it will receive a $7 million milestone payment from drug giant Eli Lilly & Co. (NYSE:LLY), which has exercised its option to assume all development and commercialization rights to Transition’s Type 2 diabetes drug candidate.
The materials sub-index, which includes mining shares, edged up 0.3 percent.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) tacked on 0.1 percent to 934.77. The 386-member measure had lost 23.6 percent since the beginning of the year through Friday.
In economic news, Canadian existing home sales rose at their fastest pace in more than two years in May, adding to evidence the nation’s housing market remains robust even amid warnings of overbuilding in parts of the housing market. The industry group for Canadian real estate agents, or CREA, said sales activity was up 3.6 percent in May from the month before. Actual sales for May, not seasonally adjusted, were down 2.6 percent from a year earlier. CREA's home price index rose 2.3 percent in May from a year earlier.
In the currency market, Canada’s dollar traded at almost a one-month high versus its U.S. peer before Stephen Poloz makes his first speech as Bank of Canada governor. The loonie was little changed at C$1.0166 per U.S. dollar at 10:28 a.m. in Toronto after touching C$1.0150. The currency reached C$1.0137 on June 16, the strongest since May 14. One loonie buys 98.37 U.S. cents.
In commodities, oil for July delivery added 0.3 percent to $98.11 a barrel. The price rose as high as $98.74 earlier, the highest intraday level since September, on renewed bets that unrest in Syria will spread to other parts of the Middle East and disrupt supplies.
In metals, gold futures for August delivery gave back 0.4 percent to $1,381.90 an ounce at 10:32 a.m. on the Comex in New York.
In the U.S., Canada's biggest trading partner, shares advanced in midday trading on Monday, with the three main indices gaining more than 1 percent. The Dow Jones Industrial Average (INDEXDJX:.DJI) rose 1.2 percent. Reported by Proactive Investors 2 hours ago.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 1 percent to 12,305.13 at 11:11 a.m. in Toronto. Three shares advanced for every stock that fell.
Energy, the main index's second most heavily weighted sector, added 1.4 percent as oil, Canada’s largest export, climbed for a fourth day. Bankers Petroleum Ltd. (TSE:BNK) picked up 5.1 percent to C$2.89 and Penn West Petroleum Ltd. (TSE:PWT) added 2.2 percent to C$11.73.
Talisman Energy Inc. (TSE:TLM), the oil and natural gas producer focused on the Americas and Southeast Asia, increased 2.2 percent to C$11.89 after Lundin Petroleum AB began drilling in a field co-owned by the two companies in the North Sea.
Financials, the main measure's most heavily-weighted sector, gained 1.1 percent, as all of the ten industries rallied.
Brookfield Asset Management Inc. (TSE:BAM.A), which last year took over Thakral Holdings Group in Australia, rose 2.6 percent to C$36.88. The Toronto-based company said it’s selling Longview Timber to Weyerhaeuser Co. (NYSE:WY) for $2.65 billion including debt. Longview Timber holds about 645,000 acres of timberlands in the U.S. Pacific Northwest. Brookfield said that, after repayment of debt and distribution of proceeds to private fund investors, it will get net cash proceeds of about $600 million. In addition, its Brookfield Infrastructure Partners LP affiliate will get net proceeds of about $470 million.
Bombardier Inc. (TSE:BBD.B), the world's third largest commercial aircraft maker, edged up 0.2 percent to C$4.69 after it confirmed European startup Odyssey Airlines as the buyer in a C Series order previously announced two years ago. London-based Odyssey is the previously undisclosed customer for 10 Bombardier CS100 aircraft, valued at $628 million, the Montreal, Quebec-based company said in a statement on Monday at the Paris Airshow. The firm order was first announced in June 2011.
Rogers Communications Inc. (TSE:RCI.B) rallied 1.2 percent to C$45.91 after an analyst with Canaccord Genuity Inc. lifted his rating for the stock.
Transition Therapeutics Inc. (TSE:TTH), a Toronto-based drugmaker, fell 1.6 percent to C$2.59 after saying it will receive a $7 million milestone payment from drug giant Eli Lilly & Co. (NYSE:LLY), which has exercised its option to assume all development and commercialization rights to Transition’s Type 2 diabetes drug candidate.
The materials sub-index, which includes mining shares, edged up 0.3 percent.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) tacked on 0.1 percent to 934.77. The 386-member measure had lost 23.6 percent since the beginning of the year through Friday.
In economic news, Canadian existing home sales rose at their fastest pace in more than two years in May, adding to evidence the nation’s housing market remains robust even amid warnings of overbuilding in parts of the housing market. The industry group for Canadian real estate agents, or CREA, said sales activity was up 3.6 percent in May from the month before. Actual sales for May, not seasonally adjusted, were down 2.6 percent from a year earlier. CREA's home price index rose 2.3 percent in May from a year earlier.
In the currency market, Canada’s dollar traded at almost a one-month high versus its U.S. peer before Stephen Poloz makes his first speech as Bank of Canada governor. The loonie was little changed at C$1.0166 per U.S. dollar at 10:28 a.m. in Toronto after touching C$1.0150. The currency reached C$1.0137 on June 16, the strongest since May 14. One loonie buys 98.37 U.S. cents.
In commodities, oil for July delivery added 0.3 percent to $98.11 a barrel. The price rose as high as $98.74 earlier, the highest intraday level since September, on renewed bets that unrest in Syria will spread to other parts of the Middle East and disrupt supplies.
In metals, gold futures for August delivery gave back 0.4 percent to $1,381.90 an ounce at 10:32 a.m. on the Comex in New York.
In the U.S., Canada's biggest trading partner, shares advanced in midday trading on Monday, with the three main indices gaining more than 1 percent. The Dow Jones Industrial Average (INDEXDJX:.DJI) rose 1.2 percent. Reported by Proactive Investors 2 hours ago.