The Toronto stock market registered a solid advance Wednesday as investors brushed aside unrest in the Middle East and a nuclear crisis in Japan and concentrate on strong economic fundamentals and major news on the merger and acquisition front.
The S&P/TSX Composite Index skyrocketed 153.23 points, or 1.1%, to finish the day at 14,083.58
The Canadian dollar was up 0.33 cents at 102.9 cents U.S.
The health sector led advancers as Canada’s largest publicly traded drug company made a hostile $5.7-billion U.S. cash bid for Pennsylvania-based biopharmaceutical company Cephalon Inc.
Valeant Pharmaceuticals International of Mississauga, Ont. is offering $73 U.S. per share cash to Cephalon’s shareholders.
The Canadian company, called Biovail until last year, says it’s making the hostile bid after being rebuffed several times by Cephalon’s board and management. Valeant shares moved up $5.24 or 12.1% to $46.98 while Cephalon shares surged 28.4% to $75.44 U.S.
The May copper contract on the Nymex dipped three cents to $4.32 U.S. a pound. Teck Resources rose 82 cents to $52.75.
Lundin Mining Corp. and Inmet Mining Corp. have agreed to call off their proposed merger, which was supposed to create a new company worth about $9 billion before the deal ran into trouble.
The plan has been doubt since Lundin became the takeover target of a third Canadian mining company, Equinox Minerals and questions arose about the future of an Inmet copper project in Panama.
Lundin shares rose 37 cents, or 4.9%, to $7.96 while Inmet gained $4.17, or 6.7%, to $66.62. Equinox shares gained 15 cents, or 2.7%, to $5.63.
Suncor Energy gained 17 cents to $43.37 and Canadian Natural Resources improved 41 cents to $47.99.
Energy markets have been rattled by pro-democracy uprisings that have cut off oil exports from Libya and threatened disruptions of crude supplies from major oil producers like Saudi Arabia and Iran, resulting in oil going as high as $106 U.S. last week.
In the gold field, Barrick Gold Corp. gained 70 cents to $50.08 and Goldcorp Inc. was up 75 cents to $48.09.
Financials also contributed to the strong showing as TD Bank rose $1.56 to $86.40 and National Bank rose $1.51 to $78.81 as it told shareholders at its annual meeting that it plans further dividend increases while growing through acquisitions.
Markets have proved resilient in recent weeks despite a civil war in Libya and a disastrous earthquake and tsunami in Japan as investors look to improving economic conditions in North America and China. It’s hoped that a strong U.S. non-farm employment report for March which is being released on Friday will reinforce that view.
In other corporate news, AGF Management Ltd. said first-quarter net income slipped 9.5% to $27.7 million. Revenue rose 4.3% to $162.9 million while assets under management increased 19.7% to $52.5 billion and its shares rose 50 cents to $19.75.
ON BAYSTREET
The TSX Venture Exchange amassed 8.56 points to 2,286.44, while the Nasdaq Canada index acquired 5.58 points to 767.28
In Toronto, all 14 subgroups gained ground, led by health-care, 3.5% stronger, metals and mining, shinier by 2% and materials, up 1.7%.
ON WALLSTREET
In New York, stocks posted solid gains Wednesday as investors welcomed two reports on job growth and President Obama's renewed push for greater U.S. energy production.
The Dow Jones industrial average moved 71.60 points higher to 12,350.60
The S & P 500 improved 8.82 points to 1,328.26. The tech-rich Nasdaq Composite Index added 19.9 to 2,776.79
Meanwhile, smaller stocks reached pre-recession highs. The Russell 2000 Index, a measure of small-cap stocks, rose 1.1%, reaching its highest level since October 2007.
Wednesday was all about jobs and energy. Before the opening bell, one report showed that employers announced fewer planned job cuts in March, even as government sector layoffs mounted.
The energy sector pushed ahead after President Obama called for an increase in U.S. oil and ethanol production, to reduce the country's dependence on energy imports.
ConocoPhillips surged 2.1%, Exxon Mobil rose 1.7% and Chevron gained 1%.
Shares of Chesapeake Energy National Fuel Gas and Southwestern Energy each gained more than 2%.
Shares of private equity firm Apollo Global fell 2.1% after the firm priced its initial public offering at $19 U.S. a share -- the top end of its expected range.
Qihoo 360 Technology, the third-largest Internet company in China, started trading on the NYSE Wednesday, a day after pricing its initial public offering at $14.50 U.S. a share. Shares quickly surged 112% to $30.69 U.S.
Qihoo's debut marks the largest Chinese IPO in the U.S. this year, following successful IPOs by Chinese tech firms Dangdang and Youku in December.
BlackRock's stock rose 6.8%. The investment firm is replacing Genzyme on the S&P 500.
Economically speaking, a second report showed private sector employment rose by 201,000 in March, according to payroll processor ADP. The figure came in slightly below forecasts but remained above 200,000. Investors look to the ADP report as a guide for what's coming in Friday's government report.
A survey of 18 economists forecasts an 180,000 jump in payrolls. The U.S. unemployment rate is expected to hold at 8.9%.
The price on the benchmark 10-year U.S. Treasury gained ground, lowering yields to 3.45% from Tuesday’s 3.49%. Treasury prices and yields move in opposite directions.
Oil for February delivery stepped back 55 cents to $104.24 U.S. a barrel.
Gold futures for June delivery fell $5.50 to $1,423 U.S. an ounce.
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