TSX up despite commodity weakness; Couche-Tard, Valeant jump

Mon Aug 22, 2016 4:44pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index rose on Monday as Alimentation Couche-Tard Inc jumped after the convenience store operator bought a U.S. chain in an expansion move and drugmaker Valeant Pharmaceuticals rose after it hired a new chief financial officer.

Lower oil and metal prices weighed on energy and mining stocks.

Couche-Tard (ATDb.TO: Quote) jumped 7.5 percent to C$66.78 after the company said it would buy U.S. chain CST Brands Inc in a roughly $4.4 billion deal.

"They're a quality name in a tape that's struggling to find quality, and especially a tape that's struggling to find quality growth," said John Stephenson, president at Stephenson & Company Capital Management.

Couche-Tard also said it would sell some Canadian CST assets to Parkland Fuel Corp (PKI.TO: Quote), whose shares rose 15.9 percent to C$29.27.

Valeant Pharmaceuticals International Inc (VRX.TO: Quote) advanced 9.7 percent to C$40.55 after hiring Zoetis Inc (ZTS.N: Quote) executive Paul Herendeen as CFO, the latest in a series of management changes at the drugmaker.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 60.73 points, or 0.41 percent, at 14,748.19.

Advancers outnumbered decliners by 1.4-to-1 and eight of the index's 10 main groups closed in positive territory.   Continued...

 
A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014.  REUTERS/Mark Blinch