Canadian stocks rose as Valeant Pharmaceuticals International Inc. rebounded from yesterday’s decline and auto-parts makers and technology companies climbed.
Valeant rose 2 percent in Toronto, after dropping 2.8 percent yesterday. Linamar Corp., which makes engines and transmissions for cars, climbed 3 percent as General Motors Co. beat analysts’ estimates for first-quarter profit. Magna International Inc. jumped 2 percent. Pacific Rubiales Energy Corp. lost 11 percent after RBC Capital Markets downgraded it to the equivalent of a hold from the equivalent of a buy.
The Standard & Poor’s/TSX Index advanced 20.86 points, or 0.1 percent, to 14,554.25 at 4 p.m. in Toronto.
“This market continues to surprise on the upside in terms of it’s been fairly stable and now you’re getting some M&A,” said Irwin Michael, who helps manage C$850 million ($770.9 million) at ABC Funds in Toronto. “If you’re sitting on a lot of cash, you would like to selectively get that money invested, so the market seems to have got a good grounding here,” he said by phone.
Valeant added 2 percent to C$148.17 in Toronto trading. Valeant this week offered to buy Allergan Inc., maker of the Botox wrinkle treatment, in a cash-and-stock deal valued at $45.7 billion in the latest step of the company’s plan to become one of the world’s largest drugmakers.
Linamar rose 3 percent to C$56.33 while Magna added 2 percent to C$110.90.
Pacific Rubiales fell 11 percent to C$17.87. The company produces oil and gas in Colombia, where rebel attacks have disrupted a pipeline in March. Pacific Rubiales has fallen 19 percent in the last four days.
Potash Corp. of Saskatchewan Inc. rose 1.5 percent to C$39.02. The largest North American producer of its namesake fertilizer posted better-than-estimated first-quarter earnings and sales as the market for the commodity began to recover following last year’s price plunge.
Nautilus Minerals, which is planning to mine copper and gold from the sea floor, rose 74 percent to 40 Canadian cents, the most since 2006, after it said it had resolved a dispute with Papua New Guinea and that its Solwara 1 project can now proceed.
Imax Corp., the maker of giant video screens and projectors, fell 4.9 percent to C$29.62 after reporting first-quarter revenue that missed analyst estimates.
To contact the reporter on this story: Gerrit De Vynck in Toronto at firstname.lastname@example.org