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CANADA STOCKS-Robust earnings, Aecon deal help lift TSX
October 26, 2017 / 3:19 PM / in a month

CANADA STOCKS-Robust earnings, Aecon deal help lift TSX

(Updates throughout with stock and index moves)

* TSX up 42.99 points, or 0.27 percent, to 15,897.76

* Seven of the TSX’s 10 main groups were higher

TORONTO, Oct 26 (Reuters) - Canada’s main stock index rose on Thursday as a slew of earnings and CCC International Holding Ltd’s acquisition of Aecon Group Inc drove gains.

Suncor Energy rose 2.1 percent to C$43.02, while Husky Energy Inc added 1.7 percent to C$16.53 after both companies reported better-than-expected third-quarter profits.

Oil and gas companies as a group climbed 0.2 percent.

Aecon Group surged 16.6 percent to C$19.26 on news that it agreed to be bought by the Chinese construction firm in a deal with an enterprise value of C$1.51 billion.

The overall industrials sector rallied broadly as well, climbing 1.1 percent.

At 10:59 a.m. ET (1459 GMT), the Toronto Stock Exchange’s S&P/TSX composite index rose 42.99 points, or 0.27 percent, to 15,897.76, putting it back on track toward a new record high.

Seven of the index’s 10 key groups advanced.

The weighty financial services group rose 0.5 percent, while tech stocks advanced 0.7 percent.

Telecom stocks were up 0.9 percent as Telus Corp extended its previous session’s gains, rising 1.4 percent to C$47.76.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 0.9 percent, weighed down by Barrick Gold Corp and Teck Resources Ltd.

Barrick sank 5.5 percent to C$19.08 after disappointing quarterly results and uncertainty surrounding its gold mine in Tanzania, which is embroiled in a multi-billion dollar tax dispute.

Teck slumped 6.8 percent to C$27.30 after reporting weaker-than-expected third-quarter results and forecasting softer prices for its coal in the fourth quarter.

Potash Corp was down 1.3 percent to C$24.81 after the fertilizer producer posted a smaller-than-expected quarterly profit and narrowed its full-year forecast.

Unexpectedly better quarterly results for Agnico Eagle Mines Ltd and Goldcorp Inc tempered some of the mining losses. Agnico gained 6.9 percent to C$60.05 and Goldcorp was up 5.3 percent to C$17.37.

Declining issues outnumbered advancing ones on the TSX by 126 to 119, for a 1.06-to-1 ratio on the downside.

Eighteen stocks posted new 52-week highs and seven saw new lows. (Reporting by Solarina Ho; Editing by Paul Simao)

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