Surge in Catamaran shares helps TSX climb

Mon Mar 30, 2015 4:49pm EDT
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index rose on Monday, buoyed by modest advances in the financial and energy sectors and a sharp increase in Catamaran Corp's CCT.TO price after UnitedHealth Group Inc (UNH.N: Quote) agreed to buy the pharmacy-benefits manager.

Catamaran's shares shot up 24.7 percent to C$75.88, helping drive a 7 percent gain in the healthcare sector.

Miner Teck Resources Ltd TCKb.TO rose 11.3 percent to C$19.45. After the closing bell Teck denied a Bloomberg News report saying it was exploring a merger with Antofagasta Plc (ANTO.L: Quote).

Gains elsewhere were broad-based, as recent economic data and comments from executives raised expectations that China might undertake more monetary easing measures. Global equity markets benefited from those hopes.

"We're seeing some pretty broad-based strength to start the week," said Youssef Zohny, portfolio manager at StennerZohny Investment Partners+ of Richardson GMP Ltd, which manages C$27 billion in assets.

"There are some indications of stimulus coming out of China, and that's helping boost risk appetite," he said.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 95.97 points, or 0.65 percent, at 14,908.39.

The benchmark index's gain came after declines in each of the previous three sessions, and with nine of the 10 main sectors ending higher.   Continued...

 
A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007.  REUTERS/Mark Blinch