TORONTO (Reuters) - Canada’s main stock index gained on Monday after falling sharply to end last week, helped by a rebound in Valeant Pharmaceuticals International Inc (VRX.TO) and by rises among resource stocks.
The market shrugged off disappointing manufacturing data from China, with the slower pace of contraction heartening investors.
“We are starting to see signs that deceleration (in China) is leveling off a little bit,” said Craig Fehr, Canadian market strategist at Edward Jones in St. Louis, Missouri.
The materials group rallied 1.5 percent, paced by fertilizer stocks. Potash Corp POT.TO gained 4 percent to C$27.55 and Agrium Inc AGU.TO added 1.4 percent to C$123.37.
Cameco Corp (CCO.TO), however, fell 2.3 percent to C$18.10 after posting lower adjusted quarterly earnings on Friday as an oversupply continued to affect demand and pricing.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended the day up 93.84 points, or 0.69 percent, at 13,623.01.
Across the index, advancing issues outnumbered decliners by 149 to 89.
The index had dropped nearly 2 percent on Friday as Valeant slumped and the banking sector retreated, trimming the monthly gain for October to 1.7 percent.
But Valeant rebounded on Monday, jumping 8.1 percent to C$131.88, after a short-seller’s latest report on the drug company did not include new allegations.
The index’s energy group gained 1.8 percent, with Canadian Natural Resources adding 3 percent to C$31.22. Sources told Reuters late last week that the company has discussed spinning off royalty assets with some pension plans and strategic buyers.
The rally in the energy group came despite a 1 percent drop in U.S. crude oil CLc1 to $46.14 a barrel. [O/R]
Consumer staples fell 0.6 percent, with Empire Co Ltd EMPa.TO down 2 percent at C$26.83.
The heavyweight financials group slipped 0.2 percent, with losses for some major bank stocks offsetting gains for insurers. Manulife Financial Corp (MFC.TO) advanced 0.6 percent to C$21.81 and Bank of Montreal (BMO.TO) fell 0.5 percent to C$75.67.
Additional reporting by Alastair Sharp; editing by James Dalgleish, G Crosse, Grant McCool