Markets in Toronto open higher on Monday, supported by a rise in Nexen Inc. and Progress Energy Resources Corp after the Canadian government approved takeover bids for the energy companies.
The S&P/TSX composite index gained 46.66 points to begin the week at 12,206.25.
The Canadian dollar faded 0.08 cents to 101.22 cents U.S.
An increase in commodity prices after a rise in factory output in China also boosted investor sentiment.
Canada approved China's biggest foreign takeover, the $15.1-billion U.S. bid by CNOOC Ltd for energy company Nexen Inc but spoke out against future acquisitions by foreign state-owned enterprises. Nexen stock $3.30, or 14.2%, to $26.59
BMO Capital Markets analysts identified four other companies that could find themselves under pressure Monday — Athabasca Oil Corp., Meg Energy Corp., Connacher Oil and Gas Ltd. and Southern Pacific Resource Corp.
Russia's Nord Gold will increase its ownership of Toronto-listed subsidiary High River Gold to 97.9% under a share offer that could boost its free float and take it a step further to a premium London listing. High River Gold shares lost a penny to 1.38
Precision Drilling Corp. expects capital expenditure to almost halve in 2013 as weak natural gas prices slow drilling activity. The company forecast capital expenditure of $485 million for 2013. Precision shares were up four cents to $7.33
In other corporate news, Enerplus Corp. plans to expand its light oil interests in Montana in a deal valued at $121 million U.S.
Calgary-based Enerplus said Monday that it will acquire an additional 20% working interest in the company’s operated leases in the Sleeping Giant area in the Elm Coulee field. Enerplus gained 16 cents to $12.99.
Spartan Oil Corp. has received an unsolicited takeover offer. No other details on the offer have been released. Spartan is active the Cardium light oil play in central Alberta and the Bakken light oil resource play in southeast Saskatchewan. Spartan Oil shares soared 40 cents, or 9.1%, to $4.80.
On the economic calendar, Canada Mortgage and Housing Corporation reported this morning that the pace of housing starts fell in November for a third straight month.
The agency says there were 17,646 actual starts last month, which translates to a seasonally adjusted annual rate of 196,125 units, down from 203,487 in October.
ON BAYSTREET
The TSX Venture Exchange added 1.35 points early in the session to 1,187.41
All but one of the 14 Toronto subgroups gained ground to begin Monday, led by energy stocks, up 1%, gold, gaining 0.9%, and the metals and mining group, up 0.8%.
Only real-estate held out against the positive tide, shedding 0.1%.
ON WALLSTREET
U.S. stocks were little changed at the open Monday as investors were hit with a fresh bout of uncertainty over Europe and ongoing fiscal cliff negotiations in Washington.
The Dow Jones Industrials nipped up 15.71 points to begin Monday to 13,170.80
The S&P 500 inched higher 0.65 points to 1,418.72, while the Nasdaq Composite Index advanced 5.78 points to 2,983.82.
Over the weekend, Italian Prime Minister Mario Monti unexpectedly announced plans to step down after parliament passes a national budget later this month.
The news sent Italian stocks plunging and the yield on the Italian 10-year bond rising to 4.82% from 4.5% last week. Investors are worried that Monti's resignation could throw a wrench into Italy's plans to bring down its high levels of debt. Italy is the third largest economy in the euro area and political instability there could reignite the region's debt crisis.
On the corporate front, shares of Ingersoll-Rand rose after the company said it plans to spin off its commercial and residential security businesses into a new company. Ingersoll-Rand also announced a $2-billion U.S. share repurchase program and boosted its quarterly dividend.
Apple shares were bouncing back, following last week's nearly 9% slide.
Best Buy shares declined after the stock was downgraded by Bank of America analysts.
Shares of McDonald's gained ground after the fast food chain said global same-store sales, a key metric, rose 2.4% in November, led by sales growth in the United States.
Treasury prices strengthened, lowering yields on the 10-year note to 1.61% from Friday’s 1.63%. Treasury prices and yields move in opposite directions.
Oil prices took on 22 cents to $86.15 U.S. a barrel.
Gold prices grew $9.40 an ounce to $1,714.90 U.S.
