- Valeant rallies after agreeing to acquire Synergetics
- Energy producers extend two-day retreat to 4.8 percent
Canadian stocks rebounded from a two-day slide amid an easing of the selloff in global equities.
The nation’s benchmark index ended higher after fluctuating between gains and losses. Health-care companies surged as Valeant Pharmaceuticals International Inc., the second-largest company by market capitalization, advanced the most since July on deal news. Canada’s largest lenders also advanced.
The Standard & Poor’s/TSX Composite Index rose 63.35 points to 13,545.25 at 4 p.m. in Toronto, after a two-day slide of 2.8 percent. The equity gauge has dropped 7.4 percent in 2015.
China, Canada’s second-largest trading partner, is shutting down its exchanges and banks until Monday to commemorate the 70th anniversary of Japan’s World War II defeat, giving investors a breather from the volatility that has engulfed Chinese markets and the rest of the world.
Global stocks had tumbled in the previous two days amid rising concern a slowdown in China’s economy and slump in its equity markets would affect growth around the world. Data yesterday indicated Canada’s economy slid a second quarter, meeting the technical definition of a recession, amid a rout in crude prices.
Senior-housing companies in Canada rallied after Amica Mature Lifestyles Inc. agreed to be acquired by a pension fund-backed company, jumping 111 percent. Chartwell Retirement Residences, the largest operator of assisted-living homes across Canada, jumped 6.8 percent, the most since 2009.
Valeant rose 4 percent, snapping a two-day retreat after agreeing to buy Synergetics USA Inc. in a cash deal worth $6.50 a share. Synergetics, a supplier of precision surgical devices, will enhance Valeant’s Bausch & Lomb eye-care business, the company said in the release.
Colliers International Group Inc. jumped 4.5 percent, the biggest gain in almost a month, after agreeing to buy real-estate firm Gateway Commercial in St. Louis for an undisclosed sum.
Alimentation Couche-Tard Inc., operator of gas bars and convenience stores, climbed 2.9 percent for a second straight increase. The company yesterday reported second-quarter earnings ahead of analysts’ estimates thanks to lower fuel prices and higher volumes sold, along with strong merchandise sales, Jennifer Bartashus, a Bloomberg Intelligence analyst, said in a report.
The resource-rich S&P/TSX has been one of the worst-performing developed markets in the world this year as crude plunged. Oil in New York rebounded after tumbling 7.7 percent Tuesday. Suncor Energy Inc. slipped 2.9 percent.
Energy and raw-materials producers are the worst-performing industries among 10 in the S&P/TSX this year. The S&P/TSX Energy Index has slumped 4.8 percent in two days and is down 20 percent for the year.