CANADA STOCKS-TSX climbs as Empire rallies on Safeway takeover move
* TSX up 8.74 points, or 0.07 percent, at 12,118.63 * Five of 10 main index sectors advance * Empire Co rises 11 percent on Safeway takeover plan * TD Bank biggest positive influence on index By John Tilak TORONTO, June 13 (Reuters) - Canada's main stock climbed on Thursday as worries about the fate of central bank stimulus plans were offset by a jump in Empire Co Ltd after the company said it will buy Safeway Inc's Canadian assets for $5.7 billion. Shares of Empire, the operator of grocery chain Sobeys, jumped 11 percent after investors and analysts cheered the move, which will nearly double Sobeys reach in Western Canada. The index had opened lower, tracking a global equities selloff on worries that major central banks might start dialing back their monetary stimulus programs, and hit a seven-week low before recovering. "People are still a little edgy, a little nervous," said Irwin Michael, portfolio manager at ABC Funds. "Everyone knows that the central bank stimulation is going to come to an end." "It's good news and bad news," he added. "The good news is they're eventually going to reduce quantitative easing due to the fact the economy is getting better." The Toronto Stock Exchange's S&P/TSX composite index was up 8.74 points, or 0.07 percent, at 12,118.63. Five of the 10 main sectors on the index were higher. Empire's jump helped the consumer staples sector gain 0.7 percent. Some other retailers in the group also made gains. Loblaw Companies Ltd was up 1.3 percent at C$47.04, and Alimentation Couche-Tard was up 1.9 percent at C$58.07, also made gains. "You're going to see more M&A just like this," Michael said. "It's a buy versus build decision (for Empire)," he added. "It's cheaper to buy a company in the marketplace than to build that company up from scratch." The financials sector, the index's most heavily weighted, was up 0.6 percent. In the group, Toronto-Dominion Bank rose 0.9 percent to $81.54 and played the biggest role of any single stock in leading the index higher. The information technology group added 1.5 percent, with smartphone maker BlackBerry climbing 5.1 percent to C$14.58. The materials sector, which includes mining stocks, slipped 0.6 percent, and energy shares fell 0.4 percent.
- Islamic State video claims to show beheading of U.S. journalist |
- Four beheaded corpses found in Egypt's Sinai: security sources
- Gaza war rages on, Hamas says Israel tried to kill its military chief |
- U.S. attorney general heads for racially charged St. Louis suburb
- 'No' from one Iraq villager triggered Islamic State mass killings |