January 14, 2014 / 1:52 PM / 4 years ago

TSX advances as Valeant, telecoms show strength

3 Min Read

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

TORONTO (Reuters) - Canada's main stock index edged higher on Tuesday as Valeant Pharmaceuticals (VRX.TO) gained after a report indicated its interest in a unit of Pfizer Inc (PFE.N) 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), 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.

Six of the 10 main sectors on the index were higher.

The telecoms group added 0.6 percent as Globalive's decision to stay out of a wireless auction boosted the big players. Rogers Communications (RCIb.TO) gained 1.7 percent to C$47.86, Telus Corp (T.TO) advanced 0.6 percent to C$37.03, and BCE Inc (BCE.TO) rose 0.7 percent to C$46.72.

Valeant jumped 4 percent to C$147.51 and had the biggest positive influence on the market. The move also helped push the healthcare sector up 1.3 percent.

Gold-mining shares gave back 1.2 percent. Goldcorp Inc (G.TO) shed 2.6 percent to C$24.34, and Barrick Gold Corp (ABX.TO) lost 1.2 percent to C$19.49.

Shaw shares slipped 1.7 percent to C$24.88 after the company posted a 4 percent rise in first-quarter profit but said it continued to lose customers in its main cable television business.

Editing by Bernadette Baum and Meredith Mazzilli

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