TSX closes at one-week high as railways, miners gain
By Alastair Sharp
TORONTO (Reuters) - Canada's main stock index rose to its highest close in more than a week on Wednesday led by railways, after Canadian Pacific disclosed a takeover bid, and helped by pipeline companies and a bounce back for gold miners.
The index extended earlier gains after the release of minutes from the last U.S. Federal Reserve policy meeting bolstered bets on a December interest rate hike.
The most influential gainer on the index was Canadian Pacific Railway Ltd (CP.TO: Quote), which rose 5.6 percent to C$194.94 after the company made public a proposal to buy Norfolk Southern that it said could help it save $1.8 billion.
Its rival, Canadian National Railway Co (CNR.TO: Quote), advanced 2.3 percent to C$78.72.
The overall industrials group gained 2 percent, while the materials group rose 2.6 percent as gold miners rebounded despite only minor gains for bullion. [GOL/]
"A bulk of the pressure from commodities and commodity stocks are probably behind us," said Sid Mokhtari, market technician and director of institutional equity research at CIBC World Markets. "We've already had a massive amount of selling."
Teck Resources Ltd TCKb.TO gained 1 percent to C$6.29 after the largest producer of steel-making coal in North America said it would cut its work force by about 9 percent. Continued...