TORONTO, Dec 15 (Reuters) - A surge in shares of takeover target Talisman Energy Inc helped Canada’s main stock index turn higher on Monday after falling more than 5 percent last week.
Shares of Calgary-based Talisman, Canada’s fifth-largest independent petroleum producer, jumped almost 20 percent to C$6.05, after Spanish oil major Repsol said it was considering a bid.
Talisman said it had been approached by a number of other parties, and investors said a bidding war was possible.
“I would think there’s a good chance that there could be another bid or two actually come in here,” John Kinsey, portfolio manager at Caldwell Securities.
The Toronto Stock Exchange’s S&P/TSX composite index was up 29.90 points, or 0.22 percent, to 13,760.95 by mid-morning.
The index, battered by plunging oil prices that have hit domestic energy producers hard, lost more than 5 percent last week, its biggest week-long slip since September 2011.
With crude oil rallying off 5-year lows on Monday, the Canadian market was exhibiting few thematic impulses as investors prepare their books for the end of the year.
“Commodity prices are still weak, and that is exacerbating the tax-loss selling. Things are going to pretty much close down by the end of this week,” Kinsey said.
Canadian Natural Resources was down 1.4 percent at C$32.71, while Potash Corp was up 1.7 percent at C$40.25.
Editing by Meredith Mazzilli
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