May 27 (Bloomberg) -- Canadian stocks rose for a second day as gold producers advanced and health-care companies soared to a 13-year high after Valeant Pharmaceuticals International Inc. surged to a record on a U.S. acquisition.
Valeant jumped 10 percent after adding Bausch & Lomb Holdings Inc. in an $8.7 billion deal, including debt. Wi-Lan Inc. gained 9.2 percent after signing a license agreement with Dell Inc., dismissing litigation. Kirkland Lake Gold Inc. and Premier Gold Mines Ltd. rose at least 2.7 percent as the price of gold advanced, extending gains after the best week in a month. Energold Drilling Corp. soared 12 percent after reporting first-quarter earnings that beat estimates.
The Standard & Poor’s/TSX Composite Index rose 29.15 points, or 0.2 percent, to 12,696.37 at 4 p.m. in Toronto. The benchmark equity gauge has gained 2.1 percent this year.
Markets in New York were closed for the Memorial Day holiday.
“It looks like we’ve hit the pause button, it’s pretty quiet today,” said Ian Nakamoto, director of research with MacDougall MacDougall & MacTier Inc. in Toronto. He helps manage $4 billion with the firm. “What I’d watch for is gold equities and the gold price, they could get a bit of a lift if equity markets are taking a pause here.”
“Valeant is an acquisition-driven company and the shares will continue rising until they make a bad investment,” Nakamoto said.
Health-care stocks paced gains in the S&P/TSX, rising 7.4 percent as a group for the highest close since March 2000. Trading volume for the broad index was 72 percent lower than the 30-day average.
Valeant, based in Montreal, surged 10 percent to C$95.85 for its highest close, according to data compiled by Bloomberg. Valeant has soared 25 percent in the past two days, as reports of the deal first surfaced on May 24.
The company said in a statement today it will pay about $4.5 billion for Bausch & Lomb, which is owned by Warburg Pincus LLC. Valeant will also pay $4.2 billion to repay Bausch & Lomb debt.
Wi-Lan, a technology patent licensing company, jumped 9.2 percent to C$4.65 after agreeing to a licensing deal with Dell. The U.S. computer retailer gains access to a subset of wireless patents for some products, the companies said in a release.
Wi-Lan, based in Ottawa, in September 2011 sued companies including Dell, Apple Inc. and Hewlett-Packard Co. for copyright infringement related to wireless technologies.
Kirkland Lake Gold jumped 6.5 percent to C$4.75 and Premier Gold Mines added 2.7 percent to C$1.89 as gold rose 0.5 percent to $1,394.70 an ounce in electronic trading in New York. Prices rose 2 percent last week, the biggest weekly gain since April 26.
Energold Drilling, which provides drilling services for mining companies, surged 12 percent to C$2.01, the biggest gain since June 2009. The Vancouver-based company reported first-quarter adjusted earnings of 15 Canadian cents a share, beating the average estimate of 10 cents according to data compiled by Bloomberg, on rising sales in its energy and manufacturing divisions.
To contact the reporter on this story: Eric Lam in Toronto at firstname.lastname@example.org
To contact the editor responsible for this story: David Scanlan at email@example.com