TORONTO (Reuters) - Canada’s main stock index tiptoed higher on Monday despite the unfolding Greek debt drama, helped by gains in shares such as Hudson’s Bay Co (HBC.TO) after the retailer announced a $3.2 billion deal for Germany’s leading department store chain.
Hudson’s Bay jumped almost 8 percent to C$25.89 after the Canadian department store operator said it was buying the Kaufhof chain from Metro MEOG.DE for 2.8 billion euros.
The broader consumer discretionary group was more muted, up just 0.1 percent.
Globally, equity markets fell broadly after the collapse of 11th-hour talks between near-bankrupt Greece and its creditors.
Investors in Canada were also uncertain.
“The market looks like it wants to test the March trough, which comes in just above 14,600,” said Fergal Smith, managing market strategist at Action Economics. “So that will be a fairly pivotal spot for the index.”
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended up 14.90 points, or 0.10 percent, at 14,756.05. Half of its 10 main sectors gained, and there were slightly more decliners than advancers on the day.
The index is roughly halfway between its September 2014 peak and October 2014 trough, when stocks declined following crude’s tumble below $100 a barrel.
“We’re due for a correction in the stock market,” said John Johnston, chief strategist at Davis-Rea. “And a correction to me is a one- to two-month period of weak prices, where you may get a decline of 10 percent or more. It’s a correction in a very expensive market.”
The biggest drags on Monday included Canadian Natural Resources (CNQ.TO), which fell 1.3 percent to C$34.84, and Suncor Energy Inc (SU.TO), off 1.6 percent at C$34.24. The overall energy group retreated 0.8 percent as crude prices fell. [O/R]
Among gainers was Alimentation Couche-Tard (ATDb.TO), which rose 2.8 percent to C$53.52 after Royal Bank of Canada upped its price target on the convenience store chain to C$56 from C$53.
Barrick Gold (ABX.TO) jumped 2.1 percent to C$14.15. Materials, which includes miners, climbed 0.3 percent.
Additional reporting by Solarina Ho; Editing by W Simon and Leslie Adler