TSX advances as Valeant, telecoms show strength

Tue Jan 14, 2014 5:05pm EST
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index edged higher on Tuesday as Valeant Pharmaceuticals (VRX.TO: Quote) gained after a report indicated its interest in a unit of Pfizer Inc (PFE.N: Quote) and telecoms shares rose after Globalive pulled out of a wireless auction.

Valeant shares climbed after Reuters reported that the drugmaker had expressed interest in buying Pfizer's branded generics business.

Investors were also encouraged as a gauge of U.S. consumer spending rose more than expected in December, indicating greater momentum for the world's biggest economy and lifting sentiment.

However, a decline in shares of Shaw Communications Inc (SJRb.TO: Quote), following the cable company's quarterly report, capped the gains.

Tuesday's modest advance was the benchmark index's fifth positive session in the last six trading days.

"One of the game changers in 2014 could be macro risks fading and a global synchronized recovery emerging," said Paul Taylor, chief investment officer at BMO Asset Management, who sees the Toronto market benefiting from those trends.

Taylor, who expects the TSX to perform in sync with U.S. stocks this year, said the index could end 2014 at around 14,500.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 10.90 points, or 0.08 percent, at 13,692.38.   Continued...

 
A general view of the TSX (Toronto Stock Exchange) Broadcast Centre in Toronto June 20, 2008. REUTERS/Mark Blinch