CANADA STOCKS-TSX climbs as Fed hopes, RIM jump offset Cyprus fears
* 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.
- Israel rejects ceasefire plan, source says, as death toll nears 850 |
- Obama tells Central American leaders most children will go home
- First Ebola victim in Sierra Leone capital on the run
- EU edges to economic sanctions on Russia but narrows scope |
- Bad weather seen as probable cause of Air Algerie crash