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TORONTO (Reuters) - Canada's main stock index climbed on Monday to its highest in a week as shares of gold miners rose with the bullion price and Valeant Pharmaceuticals International Inc (VRX.TO) jumped after the drugmaker reported quarterly results.
A drop in the U.S. dollar and rising physical demand for bullion in India helped push up the price of the commodity. [GOL/]
The positive sentiment was partly offset by shares of Canadian Pacific Railway Ltd (CP.TO), which slipped 1.5 percent after the company said it had ended merger talks with CSX Corp CSX.N.
The broader TSX index is up more than 5 percent since slumping to an eight-month low last week.
“The market is generally in a buy-the-dip mode,” said Marcus Xu, president and portfolio manager at M.Y. Capital Management Corp in Vancouver. “There are always people with cash on the side looking for deals."
“The market is nervous. It's still going to swing back and forth,” he added.
Despite the recent selloff, Xu expects the Toronto equities market to end the year higher. “There’s some good value on the TSX,” he said.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 110.09 points, or 0.77 percent, at 14,337.77. All of the 10 main sectors on the index were higher.
Shares of energy producers rose, reflecting a gain in the price of U.S. crude oil. Suncor Energy Inc (SU.TO) gained 1 percent to C$38.10, and Talisman Energy Inc TLM.TO climbed 2.2 percent to C$7.52.
Valeant posted a higher-than-expected quarterly profit and said that it may raise its bid for Botox maker Allergan Inc (AGN.N). The stock jumped 3.9 percent to C$140.74.
With additional reporting by Leah Schnurr; Editing by Lisa Von Ahn and Lisa Shumaker