TORONTO (Reuters) - Canada’s main stock index closed at a record high on Tuesday, with energy shares leading broad-based gains as oil prices climbed, while Restaurant Brands International Inc jumped more than 7 percent after it announced an acquisition.
Gains for the Toronto Stock Exchange’s S&P/TSX composite index came as data showed the fastest pace of growth in euro zone business activity for six years, while Wall Street also reached record highs as investors cheered strong results of top U.S. retailers.
“All of this support the view that the U.S. consumer and the housing market is doing quite well,” said Cavan Yie, senior equity analyst at Manulife Asset Management.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 83.74 points, or 0.53 percent, at 15,922.37, a record closing high.
The index has surged 38 percent since hitting a three-year trough in January last year.
“You have more incrementally positive commentary out of OPEC which is supporting oil prices, which in turn supports rising inflation and that in combination with the U.S. consumer doing well, housing market doing well, this is all a recipe that is positive for equities,” Yie said.
Shares of Restaurant Brands International Inc QSR.TO surged more than 7 percent to C$75.65. The owner of the Burger King and Tim Hortons fast-food chains said it would acquire Popeyes Louisiana Kitchen PLKI.O for $1.8 billion in cash.
ECN Capital Corp ECN.TO jumped 14.1 percent to C$3.64 after it said it would sell its U.S. commercial and vendor finance business to PNC Financial Services Group PNC.N for about $1.25 billion in cash.
The overall financials group edged up 0.1 percent, while the energy group climbed 1.2 percent as oil prices rose.
U.S. crude CLc1 prices settled 66 cents higher at $54.06 a barrel on the Organization of the Petroleum Exporting Countries' optimism for greater compliance with its supply cut deal.
Ritchie Bros. Auctioneers Inc RBA.TO surged 12.7 percent to C$45.72 after it reported fourth-quarter and 2016 annual results, while the overall industrials group rose 1.2 percent, helped also by gains for railroad stocks.
All 10 of the index’s main groups ended higher, with the materials group, which includes precious and base metals miners and fertilizer companies, adding 0.5 percent.
Reporting by Fergal Smith; Editing by Chizu Nomiyama and James Dalgleish
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