TORONTO (Reuters) - Canada’s main stock index climbed slightly to hit its highest in nearly six years on Tuesday, buoyed by a jump in gold-mining shares after the price of bullion gained.
Investors appeared reluctant to acquire major positions in the absence of major economic or earnings news. One catalyst for the market is expected to be the U.S. Federal Reserve’s commentary next week on the future direction of its monetary stimulus program.
The Toronto market, which is up more than 9 percent this year, has climbed in each of the last eight sessions, raising concerns that a pullback might be around the corner.
“It’s been too much of a rally,” said Keith Richards, portfolio manager and technical analyst at ValueTrend Wealth Management. “The market is probably very ripe for a correction.”
He added, however, that he was bullish about the prospects for the market over the long term.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 33.17 points, or 0.22 percent, at 14,904.38. Seven of the 10 main sectors on the index were higher.
Shares of energy producers rose, shrugging off lower oil prices. Suncor Energy Inc (SU.TO) advanced 0.6 percent to C$43.65.
In corporate news, U.S. drugmaker Allergan Inc (AGN.N) rejected a sweetened $53 billion takeover offer from Valeant Pharmaceuticals International VRX.TO and activist investor William Ackman. Valeant shares gave back 0.9 percent to C$136.78.
Editing by Jonathan Oatis and Andrew Hay