CANADA STOCKS-TSX climbs as China data, Valeant provide support

Mon Jun 2, 2014 11:02am EDT

* TSX rises 44.67 points, or 0.31 percent, to 14,648.83
    * Eight of 10 main index sectors advance
    * Valeant climbs as it plans to go hostile with Allergan bid

    By John Tilak
    TORONTO, June 2 (Reuters) - Canada's main stock index rose
on Monday as positive economic data from China lifted shares of
natural resource producers and Valeant Pharmaceuticals 
gained as the drugmaker looked to go hostile with its bid for
Allergan Inc.
    Official figures showed Chinese factory activity expanding
in May at its fastest pace in five months, easing some worries
about growth in the world's second-biggest economy.
 
    Prices of copper futures and silver were higher, driving up
shares of some mining companies. Energy stocks, which are among
the strongest performers this year, climbed despite weakness in
the price of oil.
     The export-driven Canadian market tends to react to major
economic news from China, which is a big consumer of Canadian
commodities.
    "Energy has been a winner since the beginning of the year.
So it's really a continuation of the trend," said Ian Nakamoto,
director of research at MacDougall, MacDougall & MacTier.
    Sentiment for Canadian equities is good though not
"euphoric," added Nakamoto, who expects the TSX to outperform
U.S. stocks this year.
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 44.67 points, or 0.31 percent, at 14,648.83.
Eight of the 10 main sectors on the index were higher.
    Shares of energy producers advanced 0.4 percent. Suncor
Energy Inc rose 1 percent to C$41.93, and Canadian
Natural Resources Ltd was up 0.6 percent at C$44.39.
    Financials, the index's most heavily weighted sector, added
0.2 percent, with Toronto Dominion Bank climbing 0.5
percent to C$54.04.
    With copper futures up about 1 percent, diversified miner
Teck Resources Ltd gained 0.9 percent to C$24.39.
    In corporate news, Valeant prepared to take its $53.8
billion takeover bid for Allergan directly to the Botox maker's
shareholders, and ally Pershing Square called for a meeting to
turn over the target company's board. Valeant shares added 1
percent to C$143.71. 

 (Editing by W Simon)
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