Canadian Stocks Climb Most in Two Weeks as Valeant GainsGerrit De Vynck
Canadian stocks rallied the most in two weeks as Valeant Pharmaceuticals International Inc. settled a lawsuit and financial shares advanced.
Valeant gained 2.1 percent. Mag Silver Corp. fell 11 percent after saying it would sell C$75 million in shares. Empire Co., which operates grocery stores, gained 4.6 percent after Canadian Imperial Bank of Commerce raised its rating to sector outperform, the equivalent of buy, from sector perform.
The Standard & Poor’s/TSX Composite Index rose 63.51 points, or 0.4 percent, to 15,094.25 at 4 p.m. in Toronto, paring a weekly decliine to 0.1 percent. It is up 11 percent this year and trading near an all-time high.
Royal Bank of Canada and CIBC gained at least 0.9 percent to pace gains among financial firms, which gained 0.6 percent as a group.
Empire gained 4.6 percent to C$70.82. Yesterday the company raised its dividend and reported fourth-quarter earnings that beat analyst estimates. Empire recently bought the Safeway brand in Canada.
Valeant increased 2.1 percent to C$138.12. Pershing Square Capital Management LP, which is working with Valeant to buy Allergan, agreed that Allergan’s poison pill wouldn’t be triggered by a special shareholders’ meeting.
Mag Silver fell 11 percent to C$10.04. The mining company said it would sell the new shares at C$10.25 each. The money raised will be partly used to develop the company’s Juanicipio project in Mexico, Mag Silver said.
DragonWave Inc. jumped 13 percent to C$2.05 after CIBC raised its rating on the Ottawa-based communications equipment maker.
Encana Corp., Canada’s largest natural gas producer, fell 1.5 percent to C$25.21 after agreeing to sell its Bighorn property to Apollo Global Management LLC for $1.8 billion.
Tahoe Resources Inc. fell 1.2 percent to C$27.42 as Raymond James downgraded the stock.