Canada Stocks Edge Higher as Banks, Metals Producers Lead Gains

  • Amaya surges as founder makes offer to buy online gaming firm
  • Gildan agrees to purchase struggling American Apparel brand

TSX Movers: Canadian Energy Services, Gold Stocks

Canadian stocks rose Monday, after tumbling the most in two months last week, bolstered by gains among gold producers, financial services companies and consumer discretionary shares.

The S&P/TSX Composite Index rose 0.3 percent to 14,598.51 at 4 p.m. in Toronto, after plunging 1.3 percent on Nov. 11. Only five of 11 industries in the S&P/TSX advanced on trading volume 34 percent higher than the 30-day average. The equity benchmark remains up 12 percent in 2016, making it the top performer among developed markets tracked by Bloomberg. Canadian stocks are about 9 percent more expensive than their peers in the S&P 500 Index.

Toronto-Dominion Bank rose 2 percent while Royal Bank of Canada added 0.8 percent to lead the nation’s largest lenders higher. Manulife Financial Corp. advanced 3.3 percent to extend a four-day rally and was trading at the highest level in more than a year. The company, Canada’s largest life insurer, posted third-quarter profit that almost doubled on gains from its life insurance business and investments.

Amaya Inc. jumped 14.4 percent, the most since February, to lead consumer shares higher after its founder made a cash offer to take the Canadian owner of the PokerStars online gambling service private in a deal valued at about $6.7 billion including debt. The offer, at C$24 for each outstanding common share, represented a 31 percent premium to Friday’s close at C$18.34 in Toronto. Amaya also reported third-quarter earnings and full-year projections that topped analysts’ estimates.

Gildan Activewear Inc. added 5.1 percent for its biggest gain in 18 months after agreeing to buy the American Apparel Inc. brand for about $66 million. Gildan won’t be taking on any retail stores. American Apparel filed for bankruptcy Monday, less than a year after ending its first stint under court protection.

Raw-materials producers added 0.6 percent as a group, rebounding from a two-day slide. Gold was down 0.8 percent, paring an earlier loss of as much as 1.3 percent. The precious metal has whipsawed after topping $1,300 an ounce in the immediate aftermath of Donald Trump’s surprise presidential victory. Investors initially seeking a haven from volatility have instead warmed to the idea of a Trump presidency that favors tax cuts and infrastructure spending to boost U.S. growth.

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