The resource sector led the Toronto stock market higher Monday amid major deal making in the mining sector and rising oil prices.
The S&P/TSX Composite Index ended the day up 88.20 points to 14,218.35
The Canadian dollar shaved off 0.29 cents at 103.4 cents U.S.
China’s Minmetals Resources Ltd. is launching a $6.3-billion unsolicited bid for Toronto-based miner Equinox Minerals
Minmetals said it will offer $7 per share, which represents a 23% premium to the closing price of Equinox shares on the Toronto Stock Exchange on Friday. However, investors thought that offer could be improved as the stock surged $1.84 or 32.2% to $7.55.
Minmetals also urged Equinox shareholders to reject the Toronto-based company’s bid for fellow Canadian miner Lundin Mining. Lundin shares were down 33 cents, or nearly 4%, to $8.00.
Equinox’s main asset is the Lumwana copper mine in Zambia, one of the largest new copper mines to be developed globally over the last few years.
The bid for Equinox helped push the base metals sector up sharply. Teck Resources was ahead $3.85, or 7.5%, to $55.10 after it said it has reached a tentative agreement with the union representing workers at its Elkview coal mine in B.C. while HudBay Minerals rose 41 cents to $16.55.
The May copper contract in New York was unchanged at $4.26 U.S. a pound.
In the energy sector, Suncor Energy gained 42 cents to $44.03 while Canadian Natural Resources advanced 24 cents to $47.47.
Gold stocks gained ground as Barrick Gold Corp. was ahead 35 cents to $49.78 while Kinross Gold Corp. ran up nine cents to $14.87.
In other M&A activity, New Gold Inc. and Richfield Ventures Corp. have agreed to a $550-million friendly share-swap deal. New Gold will acquire Richfield and its Blackwater project in central B.C. by issuing stock worth about $10.38 per share. New Gold shares lost 43 cents to $10.83 while Richfield shares surged $1.99 or 25.1% to $9.92.
Industrial stocks supported the TSX as Canadian National Railways gained 42 cents to $73.40.
The telecom sector was the leading decliner with Telus Corp. down 94 cents to $49.20.
Elsewhere on the corporate front, Ithaca Energy Inc. of Calgary has a deal to acquire minority interests in two North Sea oil fields in return for $74.5 million U.S. plus 10% interests in three exploration blocks, also in the North Sea. Its shares dropped one cent to $2.56.
ON BAYSTREET
The TSX Venture Exchange gained 25.32 points to 2,323.72, while the Nasdaq Canada index fell behind 4.29 points to 760.26
In Toronto, all but four of the 14 subgroups were in the green by midday Monday. Metals and mining leaped 6.2%, while global base metals progressed 3% and materials gained 2.1%.
Of the four laggards, consumer staples eased 0.7%, telecoms sifted off 0.6%, and information technology gave back 0.1%.
ON WALLSTREET
In New York, stocks were little changed Monday as investors took a wait-and-see approach about the economy.
The Dow Jones industrial average tacked on 23.31 points to conclude Monday at 12,400
The S & P 500 gained 0.46 points to 1,332.87. The tech-rich Nasdaq Composite Index ended slightly off, 0.41 points, to 2,789.19
The Dow was led higher by shares of General Electric which rose 1% after an article in Barron's -- citing a Citigroup analyst -- noted that GE may not be liable for financial damage in Japan's nuclear crisis. Johnson & Johnson and Wal-Mart were also higher.
Technology shares were the biggest drag on all three major indexes, with Intel shares down 1%, Nvidia shares down 4%, and Hewlett-Packard shares down more than 1%.
But overall, Monday was relatively quiet. Fund managers noted that trading volume was light. There were also no major economic or company reports.
Southwest Airlines shares fell 2%. The Texas-based airline canceled about 600 flights over the weekend after a hole opened on top of a Boeing 737-300 mid-flight Friday.
Pfizer shares rose 0.5% after the drugmaker announced it will sell its Capsugel capsule-making unit to Kohlberg Kravis Roberts for $2.38 billion U.S. in cash.
Fed Chairman Ben Bernanke was scheduled to speak on "Clearinghouses and Financial Stability" at a financial markets conference in Atlanta at 7:15 p.m. ET.
Investors will also listen for comments from Atlanta Fed President Dennis Lockhart and Chicago Fed President Charles Evans, who were scheduled to speak during the day.
The price on the benchmark 10-year U.S. Treasury gained ground, pushing yields down to 3.43% from Friday’s 3.45%. Treasury prices and yields move in opposite directions.
Oil for February delivery added 31 cents to $108.25 U.S. a barrel.
Gold futures for June delivery rose $4.10 to $1,432.20 U.S. an ounce.
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