May 27, 2013 / 3:08 PM / 6 years ago

CANADA STOCKS-Valeant, gold shares boost TSX on slow trading day

* TSX rises 24.90 points, or 0.20 percent, to 12,692.12
    * Valeant surges after move to buy Bausch & Lomb
    * Gold shares climb after bullion price gains

    By John Tilak
    TORONTO, May 27 (Reuters) - Canada's main stock index rose
in low volumes on Monday, driven by gains in shares of gold
producers and in Valeant Pharmaceuticals International 
after the drugmaker made an acquisition move.
    A higher bullion price, supported by strong physical demand
and a weaker dollar, spurred the rise in shares of gold
     Valeant said it agreed to buy Bausch & Lomb Holdings Inc
from Warburg Pincus LLC for $8.7 billion in cash, a deal
expected to transform Valeant into a global leader in eye care.
    Holidays in the United States, Canada's biggest trading
partner, and in the United Kingdom kept investor interest and
trading volumes low.
    About 40 million shares had changed hands on the Toronto
market by mid-morning on Monday, compared with a daily average
of 324 million in April, according to the TMX Group.
     "There is no particular news flow to drive the market one
way or the other, with gold being the one exception," said Rick
Hutcheon, president and chief operating officer at RKH
     "Gold is at best in a trading range and at worst topping
out," he added. "It will continue to erode in value."
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 24.90 points, or 0.20 percent, at 12,692.12.
Seven of the 10 main sectors on the index were higher.
    The materials sector, which includes mining stocks, added
0.6 percent, thanks to the rising gold producers.
    Goldcorp Inc was up 0.9 percent at C$27.96, and
Barrick Gold Corp added 0.9 percent to C$19.87.
    Valeant shares surged 6.9 percent to C$93.00 after the
Bausch & Lomb deal and helped the healthcare group jump 2.7
    "It sounds like a good deal," Hutcheon said. "They've been
quite the aggressive acquisitor. Presumably it (Bausch & Lomb)
makes a good fit."
    Energy shares gave back 0.1 percent, reflecting a decline in
the price of oil. 
    Enbridge Inc lost 1.1 percent to C$47.93 and was
the biggest negative influence on the market.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below