Equities in Canada’s largest centre gained ground on Monday narrowly avoiding a third consecutive monthly slide on February’s final trading day, as advances among commodities producers overshadowed a slide in Valeant Pharmaceuticals International Inc.
The S&P/TSX Composite Index gained 47.07 points to close Monday at 12,844.86, well off its highs of the day and finishing only slightly ahead on the month. The index closed on Jan. 29, the final trading day of that month, at 12,822.13.
The Canadian dollar was lower by 0.12 cents to 73.88 cents U.S.
Shares in embattled drugmaker Valeant fell $15.34, or 14%, to $94.49 after Bloomberg reported that the company is under investigation by the U.S. Securities and Exchange Commision in a previously undisclosed probe.
Bloomberg said the SEC probe is separate from an existing investigation into a company purchased by Valeant last year, Salix Pharmaceuticals Ltd.
Barrick Gold Corp advanced 53 cents, or 2.9%, to $18.80, while Goldcorp Inc advanced 71 cents, or 3.8%, to $19.44.
Among energy concerns, Canadian Natural Resources gained 89 cents, or 3.3%. to $28.28, and Cenovus Energy added 58 cents, or 3.9%, to pace gains, finishing at $15.48.
On the economic calendar, Statistics Canada reported Monday morning that its industrial product price index rose 0.5% in January, mainly as a result of higher prices for motorized and recreational vehicles. Lower prices for energy and petroleum products largely moderated the increase in the index.
The raw materials price index declined 0.4% during the same month, weighed by lower prices for crude energy products.
ON BAYSTREET
The TSX Venture Exchange took on 3.67 points to 541.73
Nine of the 13 TSX subgroups were higher, as gold sprang to life 2.8%, while energy took on 1.8%, and materials gained 1.7%.
The four laggards were anchored most by health-care, dropping 5%, while consumer staples and utilities each inched back 0.1%.
ON WALLSTREET
U.S. stocks closed lower Monday, despite gains in oil, as the S&P 500 and NASDAQ ended February with losses.
The Dow Jones Industrial average ended a seesaw day down 123.47 points to 16,516.50, but still squeezed out a gain of about 0.3% for the month. Home Depot and UnitedHealth were the greatest contributors to losses.
The S&P 500 slumped 16.23 points to 1,931.82, about 0.8% lower on the day and down 0.4% for the month. Health-care traded more than 1% lower to lead declines on the S&P 500.
The NASDAQ index dropped 32.52 points to 4,557.95
The S&P and NASDAQ posted their first three-straight months of losses since 2011.
Valeant Pharmaceutical traded more 15% lower in New York after the firm withdrew prior guidance, rescheduled its fourth-quarter earnings call and said CEO Michael Pearson was back from medical leave.
In economic news, Chicago PMI came in at 47.6 in February, missing expectations and dropping from 55.6 in January. Pending home sales fell 2.5% in January, versus expectations for a slight gain.
Overseas, the People's Bank of China cut further the reserve requirement ratio, the amount of cash the country's banks have to hold, by 0.5 percentage points after China's markets closed Monday. The cut was the first since October and the fifth since last February.
The reserve requirement ratio comes into effect Tuesday and means most large Chinese banks will have a reserve ratio of 17%.
Prices for the 10-year Treasury inched up, lowering yields to 1.74% from Friday’s 1.76%. Treasury prices and yields move in opposite directions.
Oil prices acquired a dollar a barrel to $33.78 U.S.
Gold prices jumped $15.19 to $1,232.15 U.S. an ounce.
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