CANADA STOCKS-TSX climbs as Fed hopes, RIM jump offset Cyprus fears

Wed Mar 20, 2013 11:15am EDT

Related Topics

* TSX up 20 points, or 0.16 percent, at 12,793.87
    * Eight of 10 main sectors advance
    * BlackBerry shares rise 5.5 percent on rating upgrade
    * Valeant shares rise nearly 4 percent on move to buy Obagi
Medical

    By John Tilak
    TORONTO, March 20 (Reuters) - Canada's main stock index
climbed on Wednesday, led by energy stocks that followed oil
prices higher as fears of a Cyprus default were overshadowed by
expectations that the U.S. Federal Reserve will sustain its
bond-buying stimulus plan.
    The market also received a lift from Valeant Pharmaceuticals
International Inc after the drugmaker said it would
make an acquisition, and BlackBerry, after Morgan
Stanley raised its rating on the smartphone maker's stock, which
gained 5.5 percent.
    The euro zone's plan for a bailout of Cyprus was cast into
disarray on Tuesday when the island's parliament rebuffed EU
demands for a levy on bank deposits. 
    Toronto stocks were recovering from declines recorded in the
previous two sessions because of the Cyprus concerns.
    "It may be a relief that the world has not come to an end,"
said Ron Meisels, technical analyst and president of Phases &
Cycles in Montreal. "The Cypriot government has decided to
smarten up," he added.
    Cyprus pleaded for a new loan from Russia to avert a
financial meltdown, and Finance Minister Michael Sarris said in
Moscow he had reached no deal with his Russian counterpart Anton
Siluanov but talks would continue. 
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 25 points, or 0.20 percent, at 12,799.45. Eight
of the 10 main sectors on the index were higher.
    Market strategists expect Canadian stocks will rise 8
percent this year, a Reuters poll found, with an improving
global economy expected to boost the badly lagging shares of
natural resource companies. 
    The energy sector added 0.3 percent as the price of oil
rebounded from a three-month low hit in the previous session.
Canadian Natural Resources Ltd climbed 0.7 percent to 
C$33.51. 
    In company news, Valeant said it would buy Obagi Medical
Products Inc for about $344 million to boost its
dermatology business. 
     Valeant shares were up 3.9 percent at C$76.21 and played
the biggest role of any single stock in leading the market
higher. As a result, the healthcare sector was up 1.4 percent.
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.