CANADA STOCKS-TSX gains as Valeant, CIBC jump on results

Thu Feb 27, 2014 4:49pm EST

* TSX rises 25.77 points, or 0.18 percent, to 14,214.35
    * Seven of 10 main index sectors advance
    * Valeant, CIBC, TD climb after quarterly results
    * Catamaran Corp tumbles after results, outlook

    By John Tilak
    TORONTO, Feb 27 (Reuters) - Canada's main stock index
climbed on Thursday, boosted by advances in shares of Valeant
Pharmaceuticals International Inc and Canadian Imperial
Bank of Commerce after the companies reported quarterly
results.
    CIBC shares gained 1 percent after the lender's
first-quarter profit jumped 50 percent, driven by stronger
domestic lending profits and a gain on the sale of half of its
Aeroplan credit card portfolio to Toronto-Dominion Bank.
 
    TD, the country's second-largest lender, reported a 15
percent rise in first-quarter profit and boosted its dividend by
9 percent. The stock climbed 0.7 percent. 
    Investors digested data showing a rise in orders for
long-lasting U.S. manufactured goods excluding transportation
last month. Separate figures indicated that the number of
Americans filing new applications for unemployment benefits
gained last week. [ID: nL1N0LW132]
    The market also took heart from comments from Federal
Reserve Chair Janet Yellen, who said weather could have played a
part in recent signs of weakness in the world's biggest economy.
 
    The Toronto market has outperformed the S&P 500 so
far in 2014, rising about 4.4 percent.
    "I see a pretty resilient market. It doesn't seem to want to
go down," said Ian Nakamoto, director of research at MacDougall,
MacDougall & MacTier.
    "As long as interest rates stay low, economic growth
continues to improve and earnings meet or exceed expectations,
we'll keep moving up," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 25.77 points, or 0.18 percent, at 14,214.35.
    Seven of the 10 main sectors on the index were higher.
    Financials, the index's most heavily weighted sector, added
0.5 percent, driven by CIBC and TD. The results from most of the
country's major banks, which began reporting results this week,
have topped market expectations and reflected strength in the
industry. 
    "The banks are in a sweet spot where you would want to own
them. We've been pretty pleased with the sector," said Arthur
Salzer, executive director and chief executive officer of
Northland Wealth Management. 
    "The yield curve is a good environment for the banks, and
their wealth management departments are firing on all
cylinders."
    With the price of oil slipping, shares of energy producers
declined. Canadian Natural Resources Ltd shed 0.9
percent to C$40.38, and Talisman Energy gave back 1.5 percent to
C$11.37.
    In other corporate news, Valeant posted a quarterly profit
driven by the acquisition of contact lens maker Bausch & Lomb
Holdings Inc. The stock was up 1.6 percent at C$164.96.
 
    Catamaran Corp tumbled 11.1 percent, to C$51.25,
after the pharmacy benefits manager reported quarterly results
and gave an outlook for the year.
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