Equities in Canada’s biggest market rose for a fifth consecutive day on Wednesday during a session that saw them rise to the highest level of the year, as energy shares rallied and banks slumped amid concern they carry underperforming loans to the beaten-down oil industry.
The S&P/TSX Composite Index recovered from something of a dipsy-doodle session, gaining 35.83 points to close Wednesday at 13,017.93, its highest mark since December 31.
The Canadian dollar faded 0.11 cents to 74.47 cents U.S.
The S&P/TSX is one of the best-performing markets in the developed world this year, vying with New Zealand for the top spot and outpacing returns from markets in the U.S., Britain and Germany.
Meanwhile, financial shares slipped, as Bank of Montreal lost 29 cents to $75.69, and Toronto-Dominion Bank fell 16 cents to $53.18.
The nation’s largest lenders reported mixed first-quarter earnings over the past week, with Royal Bank and Toronto-Dominion bank missing analysts’ estimates.
CCL Industries Inc., a packaging and label-maker, jumped $24.67, or 11.9%, to a two-month high of $234.17, after agreeing to buy Checkpoint Systems Inc. in a friendly deal worth about $556 million. Checkpoint makes label products for the retail and apparel industry.
Base metals producers First Quantum Minerals shot higher $1.43, or 27.6%, to $6.62, and Teck Resources Ltd. surged $1.55, or 19.5%, to $9.51 to lead raw-materials producers higher as copper climbed to a three-month high. The industry is the best-performing group in the S&P/TSX this year.
Valeant Pharmaceuticals International Inc. rose $2.82, or 3.2%, to $90.76, snapping a four-day slide to rebound from a 2013 low.
Shares of the drugmaker pared losses of as much as 11% Tuesday after one Nomura analyst said Valeant was viewed with more confidence after conversations with the company.
That same analyst maintained a buy rating on the stock. Shares of the drug maker have plunged 74% from an August high amid intense scrutiny from investors and lawmakers over its pricing practices.
ON BAYSTREET
The TSX Venture Exchange picked up 4.54 points to 546.23
Seven of the 13 TSX subgroups were higher Wednesday, as metals and mining leaped 15.7%, materials improved 3.8%, and gold did better 2.5%.
The half-dozen laggards were weighed most by consumer discretionaries, off 1%, while telecoms slumped 0.7%, and consumer staples slouched 0.6%.
ON WALLSTREET
U.S. stocks closed mildly higher Wednesday after their best start to a month in just over three years. Oil and data remained in focus ahead of Friday's jobs report.
The Dow Jones Industrial average recovered 34.24 points to 16,899.32, after a leap of more than 300 points Tuesday. .IBM contributed the most to gains in the Dow, while Nike and DuPont weighed.
The S&P 500 added 4.65 points to 1,983. Energy closed 2.4% higher to lead S&P 500 advancers. Telecommunications was the index’s second-best performer, trading at highs not seen since August 2014.
The NASDAQ index poked higher 13.83 points to 4,703.42
The ADP employment report showed U.S. private employers added a more-than-expected 214,000 jobs in February. Treasury yields edged higher after the report.
The Fed's Beige Book released Wednesday said that economic activity increased in most regions. Consumer spending rose in most districts.
Prices for the 10-year Treasury lost a bit of ground, boosting yields to 1.84% from Tuesday’s 1.82%. Treasury prices and yields move in opposite directions.
Oil prices gained 32 cents a barrel to $34.72 U.S.
Gold prices grew $8.75 to $1,240.90 U.S. an ounce.
