The Toronto stock market registered a solid advance mid-afternoon Monday with gains spread out across almost all sectors despite disappointing economic news from the world's third-largest economy.
The S&P/TSX composite index gained 39.40 points to conclude Monday at 14,882.50
The Canadian dollar docked 0.11 cents to 88.51 cents U.S.
American Botox maker Allergan reached a friendly deal to be acquired by Irish drug company Actavis in a deal valued at $66 billion U.S., which appeared to trump a hostile offer by Quebec-based Valeant Pharmaceuticals, Allergan shareholders will receive about $219 U.S. in cash and stock.
Valeant's most recent bid was valued at $53 billion U.S. and the company said Monday it couldn't justify matching the Actavis offer. Valeant shares rose $2.93, or 1.9%, to $154.40.
Osisko Gold Royalties Ltd. and Virginia Mines Inc. plan to combine their businesses to create a royalty company with revenue from two Quebec operating gold mines.
The friendly deal values Virginia Mines of Quebec City at about $479 million, about 41% above the Friday closing stock price. Osisko shares slipped 56 cents, or 3.6%, to $14.86, while Virginia Mines jumped $3.59, or 35.7%, to $13.66.
Among gold stocks, Barrick Gold took on 23 cents, or 1.7%, to $14.06, while Allied Nevada Gold spiked 31 cents, or 19.8%, to $1.88.
The base metals component was ahead while December copper was a cent lower at $3.04 U.S. Teck Resources gained 20 cents to $18.30
Telecoms were also supportive, with Telus adding 59 cents, or 1.4%, to $43.34.
Also, the Republican-controlled U.S. House of Representatives passed legislation in favour of building TransCanada's Keystone XL pipeline on Friday. And supporters in the Democratic-run Senate predicted they will get the 60 votes needed to pass it this week.
However, President Barack Obama could veto the bill and it is highly uncertain if the Senate or House will have the two-thirds majorities that would be needed to override a veto. TransCanada was up 78 cents, or 1.4%, to $56.58.
Economically speaking, the world's third-largest economy unexpectedly shrank by an annualized 1.6% in July-September.
At home, Statistics Canada reported that Canadians bought up more foreign securities in September, adding $8.6 billion worth to their holdings. Meanwhile, foreign investment in Canadian securities slowed to $4.4 billion, mostly private corporate instruments.
Elsewhere, the Canadian Real Estate Association reported that national home sales rose 0.7% from September to October. CREA also said actual (not seasonally adjusted) activity stood 7% above October 2013 levels.
ON BAYSTREET
The TSX Venture Exchange nosed up 1.21 points to 777.84.
All but four of the 14 Toronto subgroups were higher by day’s end, with gold ahead 1.7%, telecoms up 1.4%, and utilities better by 1.1%
The four laggards were weighed mostly by consumer staples, down 0.8%, energy, down 0.7%, and global base metals, sliding 0.5%.
ON WALLSTREET
U.S. stocks were little moved on Monday, with the S&P 500 recording a 42nd record close of the year, as comments by European Central Bank President Mario Draghi helped offset data that unexpectedly showed Japan's economy in a recession.
The Dow Jones Industrials eked higher 13.01 points to close the day at 17,647.75
The S&P 500 remained positive 1.50 points at 2,041.32. The NASDAQ index dipped 17.54 points to 4,671.
Baker Hughes surged after Halliburton Co. agreed to buy its rival in oilfield services. Allergan rose after Actavis said it would acquire the Botox maker for $219 U.S. a share in cash and stock.
Halliburton and others in the oil business fell along with the price of crude, with shares of Denbury Resources leading declines on the S&P 500 after saying it would cut its 2015 capital spending in half.
Monday's U.S. economic reports had industrial production falling 0.1% in October, compared to expectations for a 0.2% gain.
Separate data had manufacturing activity in New York State rising in November, bouncing back from the prior month's read.
Words voiced by Draghi briefly helped soothe concerns about the global economy, with stocks taking a temporary turn higher in the wake of his comments to the European Union's Parliament, with the ECB head saying the central bank's governing council remained "unanimous in its commitment to using additional unconventional instruments if needed."
Prices for 10-year U.S. Treasuries listed lower, raising yields to 2.34% from Friday’s 2.32%. Treasury prices and yields move in opposite directions.
Oil prices doffed 33 cents to $75.49 U.S.
Gold prices slipped 60 cents to $1,185 U.S.
