Stocks rise in early trading amid moves to widen Chinese market access, Allergan nixes Valeant bid

Canadian Press, The Canadian Press
0 Comments| May 12, 2014


TORONTO _ Rising miners helped give the Toronto stock market a solid gain as copper prices jumped in response to moves to open up Chinese markets.

The S&P/TSX composite index gained 94.11 points to 14,628.17. Base metal miners advanced after China's cabinet promised in an announcement late Friday to allow local governments to issue bonds and to streamline the approval process for initial public stock offerings, a move that was seen as widening market access.

The Canadian dollar edged up 0.12 of a cent to 91.9 cents US.

On the merger and acquisition front, Botox-maker Allergan Inc. (NYSE: AGNStock Forumhas rejected the US$48-billion hostile takeover bid by Quebec-based Valeant Pharmaceuticals International Inc. (TSX: T.VRXStock Forum). It says the bid undervalues Allergan, isn't in the best interests of the U.S. company and creates risks and uncertainties for its shareholders. The California-based company also says the offer doesn't reflect its future earnings and growth. Valeant shares dropped $2.27 to $140.69.

U.S. indexes were also higher as the Dow Jones industrials ran up 99.77 points to 16,683.11, the Nasdaq gained 54.23 points to 4,126.1 and the S&P 500 index was ahead 14.11 points to 1,892.59.

Investors also looked ahead of a busy week for economic news that should reassure investors that the U.S. economy is recovering from the damage caused by a severe winter.

The April reading on U.S. retail sales will be released on Tuesday, capacity utilization and industrial production data Thursday and April housing stars numbers along with the May reading on consumer confidence from the University of Michigan on Friday.

Together, they are expected to indicate that the U.S. economy will run ahead 3.8 per cent in the second quarter after likely contracting in the January-March period.

It's a light week for Canadian data. Statistics Canada releases the March report on manufacturing shipments on Thursday.

The base metals sector led TSX advancers, up 3.2 per cent while July copper gained six cents to US$3.15 a pound.

June bullion added $11.60 to US$1,299.20, pushing the gold sector up 1.35 per cent.

The energy sector climbed 1.4 per cent while June crude ran up 69 cents to US$100.68 a barrel.

Meanwhile, the European Union added 13 more people, and two enterprises to its Ukraine list for visa bans and asset freezes. The EU made the move Monday after pro-Russian insurgents claimed 89 per cent of those who cast ballots Sunday in eastern Ukraine's Donetsk region and about 96 per cent of those who turned out in the neighbouring Luhansk region voted for sovereignty in referenda staged during the weekend. It remained unclear whether the vote could lead to their secession.

In other corporate news, Chemtrade Logistics Income Fund (TSX: T.CHE.UN, Stock Forumsays it has an agreement to sell its refinery services business in Montreal to Suncor Energy Products Inc. for roughly $120 million. Chemtrade's Montreal business provides sulphur removal and other services only to Suncor's Montreal refinery. Chemtrade units were unchanged from Friday at $20.60.


Tags: HEALTHCARE DRUG MANUFACTURERS - SPECIALTY & GENERIC

Rate this article
0 stars
v
Usefulness

Clarity

Credibility

Comments

No comments yet. Be first to comment!

Leave a Message

You must be logged in to access this feature.