Canadian shares stretched gains for a second day on Tuesday, after stronger economic data from the U.S. bolstered energy producers, and as investors await news from a two-day U.S. Federal Reserve meeting. Tim Hortons' jump paced gains.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) advanced 0.6 percent to 12,357.55 at 12:18 p.m. in Toronto. The 237-member gauge has lost 1.2 percent this year through Monday. Nine out of ten industry groups advanced.
Data on Tuesday showed U.S. consumer prices rose in May and that a gauge of underlying price pressures indicated signs of stabilizing after a long decline.
Tim Hortons Inc. (TSE:THI), Canada’s largest fast-food chain, climbed 3.6 percent to C$55.80 after activist investor Scout Capital Management LLC, a New York-based hedge fund, said in a filing it bought a 5.5 percent stake in the company. Scout said it has “engaged in discussions” with Tim Hortons regarding its capital structure, spending, share buybacks and compensation.
Energy, the main index's second most heavily weighted sector, rose 0.8 percent as oil, Canada’s largest export, approached a nine-month high.
Encana Corp. (TSE:ECA), Canada’s largest natural gas producer, advanced 2.1 percent to C$18.38. Suncor Energy Inc. (TSE:SU), Canada's largest energy company by market value, added 2.2 percent to C$31.94.
Talisman Energy Inc. (TSE:TLM), the oil and natural gas producer focused on the Americas and Southeast Asia, increased 1.6 percent to C$12.03. The company is considering selling its shale holdings in Texas for as much as $2 billion, Reuters reported, citing people familiar with the deal.
Petrominerales Ltd. (TSE:PMG), a Canadian oil producer focused on South America, climbed 14 percent to C$6.83 after its chief executive officer said it has received interest for its pipeline assets.
In other stocks, Valeant Pharmaceuticals International Inc. ( (TSE:VRX), Canada’s largest drug-maker, added 2.6 percent to C$88.92. The Laval, Quebec-based company has scheduled a bank meeting for this Wednesday to begin a $9.3 billion financing for its planned purchase of Bausch & Lomb, according to Reuters.
Bombardier Inc. (TSE:BBD.B), the world's only manufacturer of both planes and trains, fell 3.1 percent to C$4.55 even as it said its aerospace and transportation units had obtained firm and potential orders valued at approximately $4 billion.
Financials, the main measure's most heavily-weighted sector, gained 0.9 percent. Royal Bank of Canada (TSE:RY), the country's biggest lender, rose 1.2 percent to C$61.13.
The materials sub-index, which includes mining shares, lost 1 percent as gold futures declined to a three-week low.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) slid 0.4 percent to 930.26. The 386-member measure tumbled 3 percent since the beginning of the month through Monday.
In commodities, crude for July delivery added 0.5 percent to $98.26 a barrel on the New York Mercantile Exchange. Crude rose, as the Syrian conflict bolstered concern that the flow of supplies from the Middle East may be disrupted and on signs that economic growth is accelerating.
In metals, gold futures for August delivery dropped 1 percent to $1,369.80 an ounce at 9:56 a.m. on the Comex in New York. Earlier, the price touched $1,368.30, the lowest for a most-active contract since June 11.
In the U.S., Canada's biggest trading partner, shares gained in midday trading on Tuesday as housing starts rallied in May and investors looked for the outcome of a Federal Reserve policy meeting. The Nasdaq Composite Index (INDEXNASDAQ:.IXIC) advanced 0.7 percent.
In the currency market, the Canadian dollar declined for a third day versus its U.S. peer. The loonie slipped 0.2 percent to C$1.0206 per U.S. dollar at 10:29 a.m. in Toronto. One loonie buys 97.98 U.S. cents. Reported by Proactive Investors 2 hours ago.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) advanced 0.6 percent to 12,357.55 at 12:18 p.m. in Toronto. The 237-member gauge has lost 1.2 percent this year through Monday. Nine out of ten industry groups advanced.
Data on Tuesday showed U.S. consumer prices rose in May and that a gauge of underlying price pressures indicated signs of stabilizing after a long decline.
Tim Hortons Inc. (TSE:THI), Canada’s largest fast-food chain, climbed 3.6 percent to C$55.80 after activist investor Scout Capital Management LLC, a New York-based hedge fund, said in a filing it bought a 5.5 percent stake in the company. Scout said it has “engaged in discussions” with Tim Hortons regarding its capital structure, spending, share buybacks and compensation.
Energy, the main index's second most heavily weighted sector, rose 0.8 percent as oil, Canada’s largest export, approached a nine-month high.
Encana Corp. (TSE:ECA), Canada’s largest natural gas producer, advanced 2.1 percent to C$18.38. Suncor Energy Inc. (TSE:SU), Canada's largest energy company by market value, added 2.2 percent to C$31.94.
Talisman Energy Inc. (TSE:TLM), the oil and natural gas producer focused on the Americas and Southeast Asia, increased 1.6 percent to C$12.03. The company is considering selling its shale holdings in Texas for as much as $2 billion, Reuters reported, citing people familiar with the deal.
Petrominerales Ltd. (TSE:PMG), a Canadian oil producer focused on South America, climbed 14 percent to C$6.83 after its chief executive officer said it has received interest for its pipeline assets.
In other stocks, Valeant Pharmaceuticals International Inc. ( (TSE:VRX), Canada’s largest drug-maker, added 2.6 percent to C$88.92. The Laval, Quebec-based company has scheduled a bank meeting for this Wednesday to begin a $9.3 billion financing for its planned purchase of Bausch & Lomb, according to Reuters.
Bombardier Inc. (TSE:BBD.B), the world's only manufacturer of both planes and trains, fell 3.1 percent to C$4.55 even as it said its aerospace and transportation units had obtained firm and potential orders valued at approximately $4 billion.
Financials, the main measure's most heavily-weighted sector, gained 0.9 percent. Royal Bank of Canada (TSE:RY), the country's biggest lender, rose 1.2 percent to C$61.13.
The materials sub-index, which includes mining shares, lost 1 percent as gold futures declined to a three-week low.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) slid 0.4 percent to 930.26. The 386-member measure tumbled 3 percent since the beginning of the month through Monday.
In commodities, crude for July delivery added 0.5 percent to $98.26 a barrel on the New York Mercantile Exchange. Crude rose, as the Syrian conflict bolstered concern that the flow of supplies from the Middle East may be disrupted and on signs that economic growth is accelerating.
In metals, gold futures for August delivery dropped 1 percent to $1,369.80 an ounce at 9:56 a.m. on the Comex in New York. Earlier, the price touched $1,368.30, the lowest for a most-active contract since June 11.
In the U.S., Canada's biggest trading partner, shares gained in midday trading on Tuesday as housing starts rallied in May and investors looked for the outcome of a Federal Reserve policy meeting. The Nasdaq Composite Index (INDEXNASDAQ:.IXIC) advanced 0.7 percent.
In the currency market, the Canadian dollar declined for a third day versus its U.S. peer. The loonie slipped 0.2 percent to C$1.0206 per U.S. dollar at 10:29 a.m. in Toronto. One loonie buys 97.98 U.S. cents. Reported by Proactive Investors 2 hours ago.