CANADA STOCKS-Resource shares, Valeant nudge TSX higher

Tue May 20, 2014 10:41am EDT

* TSX rises 25.67 points, or 0.18 percent, to 14,540.41
    * Seven of the 10 main index sectors advance
    * Valeant higher after commenting on Allergan bid plans

    By John Tilak
    TORONTO, May 20 (Reuters) - Canada's main stock index
climbed slightly on Tuesday as gains in materials and energy
shares helped offset weakness in the financial sector.
    Providing further support was a rise in shares of Valeant
Pharmaceuticals International Inc after the drugmaker
said its sweetened takeover offer for Allergan Inc would
not be an all-cash bid as was expected. 
    Opening after a long weekend, the Toronto stock market
advanced after recording declines in the previous three
sessions. It is up 6.7 percent so far this year.
    "We really are in the trading range of the market. There is
very little volatility," said John Ing, president of Maison
Placements Canada, who suggested that investors be cautious.
    "In the backdrop, there still is the threat of higher
(interest) rates, sinking currencies and geopolitical tensions,"
he added.
    Market valuations are on the high side, and the TSX could go
lower from here, Ing said.
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 25.67 points, or 0.18 percent, at 14,540.41.
Seven of the 10 main sectors on the index were higher.
    The materials sector, which includes mining stocks, rose 0.3
percent, helped by higher commodity prices. Barrick Gold Corp
 added 0.8 percent to C$18.20, and Teck Resources Ltd
 climbed 0.7 percent to C$24.81.
    Shares of energy producers were up despite a decline in the
price of oil. Encana Corp jumped 1.3 percent to
C$24.93.
    But financials, the index's most heavily weighted sector,
gave back 0.3 percent. Royal Bank of Canada slipped 0.4
percent to C$72.54, and Bank of Montreal lost 0.4
percent to C$74.50.
    Valeant rose 1.6 percent to C$139.77, helping to push up the
index's healthcare sector.
    ($1=$1.09 Canadian)

 (Editing by Peter Galloway)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.