TSX Rises As Tim Hortons Perks Up On BK Merger -- Canadian Commentary

By RTT News, 

(RTTNews.com) - Canadian stocks are moving up Monday morning, led by gains in Tim Hortons amid news the company will be acquired by Burger King Worldwide Inc.

Gains in European markets amid expectations of fresh stimulus from the European Central Bank and positive mood on Wall Street where the S&P 500 index crossed the 2,000 mark are also lifting sentiment.

Gold and energy stocks are a bit mixed amid sluggish commodity prices.

The benchmark S&P/TSX Composite Index is up 56.07 points or 0.36 percent at 15,591.62, a new all-time intraday high.

On Friday, the index ended down 20.54 points or 0.13 percent at 15,535.55. However, for the week, the index gained about 1.5 percent.

The Consumer Discretionary Index Index is up 1.90 percent, with Tim Hortons Inc. (THI.TO) shares rising nearly 21 percent. Tim Hortons Inc. and Burger King Worldwide Inc. ( BKW ) have confirmed that they are in discussions to create a global leader in the quick service restaurant business. The new publicly-listed company would be headquartered in Canada.

Among other stocks in the consumer discretionary section, Magna International Inc. (MG.TO), Thomson Reuters Corporation (TRI.TO), Gildan Activewear Inc. (GIL.TO), Aimia Inc. (AIM.TO) and Cineplex Inc. (CGX.TO) are advancing 0.3 to 0.7 percent.

The Industrial Index is up 0.4 percent with Canadian National Railway Company (CNR.TO), SNC-Lavalin Group Inc. (SNC.TO) and Finning International Inc. (FTT.TO) gaining 0.5 to 1.0 percent.

The Financial Index is up 0.3 percent. Among the big six banks, National Bank of Canada (NA.TO) is flat, while the rest are moving up 0.3 to 0.6 percent.

Manulife Financial Corporation (MFC.TO) is rising 0.8 percent, while Sun Life Financial Inc. (SLF.TO) is lower by about 1.0 percent.

Healthcare stock Valeant Pharmaceuticals International Inc. (VRX.TO) is declining more than 1 percent. Pershing Square Capital LP said Friday it submitted written requests from 31 percent of Allergan Inc ( AGN ) stockholders that the botox maker call for a special meeting to discuss a rejig of the Allergan board as well as the unsolicited acquisition offer from Valeant.

Meanwhile, Extendicare Inc. (EXE.TO) and Catamaran Corporation (CCT.TO) are up in positive territory, gaining 1.2 percent and 0.5 percent, respectively.

The Information Technology Index is up 0.5 percent. BlackBerry Limited (BB.TO) is rising over 2.0 percent, while CGI Group Inc. (GIB.A.TO) and Celestica Inc. (CLS.TO) are both higher by about 1.0 percent.

Cardinal Energy Ltd. (CJ.TO) said its previously announced Wainwright Acquisition has closed effective August 22. The deal will allow Cardinal to expand its drilling program while maintaining a less than 15 percent corporate decline rate. The stock is little changed from last week's closing price.

Among other stocks in the energy space, Canadian Natural Resources Limited (CNQ.TO) and Encana Corporation (ECA.TO) are moving up 0.8 percent and 0.5 percent, respectively. TransCanada Corporation (TRP.TO) is advancing 1.7 percent and Surge Energy (SGY.TO) is adding nearly 2.0 percent

Among gold stocks, Barrick Gold Corporation (ABX.TO), Agnico Eagle Mines Limited (AEM.TO), Yamana Gold Inc. (YRI.TO), Kinross Gold Corporation (K.TO) and B2Gold Corp. (BTO.TO) are declining 0.5 to 1.5 percent.

Polaris Minerals Corp. (PLS.TO) is moving up over 2 percent. The company said it has appointed Scott Dryden as Vice President of Business Development.

In commodities, crude oil futures for October are down $0.36 or 0.38 percent at $93.29 a barrel, weighed by concerns over a likely fall in demand.

Natural gas for October is up $0.090 or 2.30 percent at $3.972 per million btu.

Gold futures for December are down $3.00 or 0.23 percent at $1,277.20 an ounce.

Silver for December is down $0.071 or 0.36 percent at $19.388 an ounce. Meanwhile, copper is up $0.010 or 0.32 percent at $3.233 per pound.

European markets are currently trading higher amid hopes of the ECB will roll out more monetary stimulus to counter deflationary risks.

Speaking at the Jacksone Hole Symposium last Friday, European Central Bank President Mario Draghi said the ECB is willing to inject considerably more cash into the system if needed to keep low rates of inflation from taking hold.

In the symposium, the U.S. Federal Reserve Chair Janet Yellen gave little hint about monetary policy outlook.

For comments and feedback: contact editorial@rttnews.com


This article appears in: News Headlines

Referenced Stocks: ABX , AEM , AGN , BKW , CLS

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