Equities in Canada’s biggest centre enjoyed a day rich in gains, mostly in the industrial and energy sectors.
The S&P/TSX Composite Index soared 63.64 points to close Monday at 15,236.67
The Canadian dollar plummeted 0.91 cents to 81.33 cents U.S.
Among industrials, Bombardier squeezed higher two cents to $2.40, while Magna International tacked on 41 cents to $63.64.
The energy group climbed even as oil prices slipped from recent multi-month highs, with Encana Corp up 44 cents, or 3.5%, at $13.15, Cenovus Energy progressed 20 cents, or 1.8%, to $11.22.
Telecoms were also prominent, as BCE shone brighter 24 cents to $58.34, and Shaw Communications gained 15 cents to $27.83.
Barrick Gold Corp fell 25 cents, or 1.2%, to $20.82, and Goldcorp lost 18 cents, or 1.1% to $15.96 as prices for bullion hit a two-and-a-half-week low ahead of a two-day U.S. Federal Reserve meeting and as global equities surged.
Among real-estate concerns, COMINAR REIT ditched one cent per unit to $13.37, while Crombie REIT shed 15 cents a unit, or 1.1%, to $13.38.
Among consumer staple stocks, Empire Co. got bruised 72 cents, or nearly 3%, to $23.29.
On the economic slate, Statistics Canada reported that offshore investors purchased $24 billion in Canadian securities in July, led by record acquisitions of Canadian bonds. At the same time, Canadian investors reduced their holdings of foreign securities by $1.8 billion, following strong acquisitions in June.
ON BAYSTREET
The TSX Venture Exchange demurred 2.88 points by Monday’s close to 776.78
All but three of the 12 TSX subgroups were positive on the day, as industrials marched 0.9%, energy jumped 0.8%, and telecoms added 0.6%.
The three laggards were gold, down 1%, real-estate, retreating 0.4%, and consumer staples, fading 0.03%.
ON WALLSTREET
U.S. stocks closed higher on Monday as investors looked ahead to a key Federal Reserve meeting. Wall Street also cheered a big defense industry deal.
The Dow Jones Industrials gained 63.01 points to 22,331.35, a fifth-consecutive new record high. Boeing and Caterpillar contributed the most to the gains.
The S&P 500 collected 3.64 points above Friday’s all-time record to 2,503.87, as financials led advancers
The NASDAQ gathered 6.17 points to 6,454.64, also peaking.
Shares of Orbital ATK rose about 20% in mid-morning trade after announcing it is being bought by defense giant Northrop Grumman. In a release, the two companies said Northrop would pay $9.2 billion in cash and debt. Orbital shareholders will receive all-cash consideration of $134.50 a share, a 22% premium to its Friday close of $110.04.
The deal comes two weeks after United Technologies announced its acquisition of Rockwell Collins. On Sept. 4, United Tech said it would pay $30 billion for Rockwell.
Investors were also preparing themselves for the start of the Fed's meeting this week. Market participants are largely expecting interest rates to remain unchanged. But Wall Street is expecting the Fed to announce the unwinding of its $4.5-trillion balance sheet. The Fed accrued its massive portfolio during the Financial Crisis.
Prices for the benchmark 10-year Treasury note were lower, raising yields to 2.23% from Friday’s 2.2%. Treasury prices and yields move in opposite directions.
Oil prices took on one cent a barrel to $49.90
Gold prices backpedaled $13.90 to $1,311.30 U.S. an ounce
