TSX rises as Celtic deal spurs rise in oil shares
By Solarina Ho
TORONTO (Reuters) - Toronto's main stock index notched its highest close in more than a month on Wednesday, as a takeover deal for Celtic Exploration Ltd CLT.TO drove its shares higher and spurred gains in other oil and gas companies.
The index followed advances in global stocks, as hopes grew that Spain will ask for a bailout next month, alleviating the euro zone debt crisis, and as data that groundbreaking on U.S. homes surged in September helped soothe ongoing worries about the global economic growth. <MKTS/GLOB>
Exxon Mobil Corp (XOM.N: Quote) agreed to buy Celtic Exploration for C$2.6 billion ($2.64 billion). Celtic's shares surged 45.09 percent, to C$26.29 and were the most influential index mover.
"Certainly the Celtic news is pretty important, and then you just have a decent tone in the rest of the global markets to help along a little bit," said Levente Mady, senior portfolio manager at PI Financial Corp.
Energy stocks - about 25 percent of the index - were up 1.43 percent. Suncor Energy (SU.TO: Quote) climbed 1.33 percent to finish at C$33.60, while natural gas producer, Encana Corp ECA.TO, rose 2.43 percent to C$22.78.
"There's some excitement around, again, the idea that a major acquisition is occurring with a beloved Canadian name like Celtic this morning. I think that gets the whole space excited," said Mike Newton, associate director and portfolio manager at Macquarie Private Wealth Inc.
Banks shares also gained, rounding out the top five most influential stocks on the index. The financial group, which make up nearly a third of the index's weight, rose 0.36 percent. Royal Bank of Canada (RY.TO: Quote) was up 0.57 percent at C$58.19, while Bank of Nova Scotia (BNS.TO: Quote) rose 0.43 percent to end at C$54.31.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE rose 53.54 points, or 0.43 percent, to 12,461.24. It was the highest close since September 14, when it finished at 12,499.47. Seven of the index's 10 main groups advanced. Continued...