Canadian shares gained to their highest point in two weeks as drug-maker Valeant resolved a lawsuit and stocks of financial companies surged on Friday.
Valeant Pharmaceuticals added 2.1%. Mag Silver Corp dropped 11% after announcing it would put up to 75 million Canadian dollars worth of shares. Empire Co. which runs grocery shops, hiked 4.6% after its stock’s rating was upgraded to sector outperform, same as buy, from sector perform rating by Canadian Imperial Bank of Commerce.
In Toronto, the Standard & Poor’s/TSX Composite Index added 63.51 points or 0.4%, to 15,094.24 as of 4 pm.
According to the Financial Post, the S&P/TSX composite index has gained 25% since June 2013 and has soared in 11 of the past 12 months. However, some investors are joining the race to buy more Canadian stocks even as others sell out.
“The market has now outpaced most underlying fundamentals and appears to be pricing in acceleration in global growth,” Brian Belski of BMO Capital Markets told investors, encouraging them to take profits.
Royal Bank of Canada and CIBC surged at least 0.9% to accelerate gains in financial stocks, which added 0.6% as a group.
Empire advanced to C$70.82. On Thursday, the firm hiked its payback to investors and announced fourth-quarter earnings that surpassed analysts’ outlook.
Pershing Square Capital Management LP, which jointly with Valeant seeks to buy Allergan, affirmed that Allergan’s poison pill would not be initiated by a special investors’ conference.
Mag Silver said it would use proceeds from sale of its shares at C$10.25 each partly to develop its Juanicipio project in Mexico, Bloomberg reported.
Largest producer of natural gas in Canada Encana Corp lost 1.5% to C$25.21 after agreeing to dispose its Bighorn asset to Apollo Global Management LLC for $1.8 billion.
Tahoe Resources plunged 1.2% to C$27.42 as its stock suffered a downgrade by Raymond James.
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