🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

CANADA STOCKS-TSX gains as Open Text jumps on deal, caution on Fed talks

Published 2016-09-12, 04:46 p/m
© Reuters.  CANADA STOCKS-TSX gains as Open Text jumps on deal, caution on Fed talks
AGU
-
POT
-
GSPTSE
-
FFH
-
OTEX
-
MFC
-

(Adds strategist comment, updates prices)

* TSX ends up 57.06 points, or 0.39 percent, at 14,597.06

* Six of the TSX's 10 main groups move higher

By Alastair Sharp

TORONTO, Sept 12 (Reuters) - Canada's main stock index rose on Monday, boosted by a surge in shares of Open Text Corp OTC.TO after the software company acquired a rival's assets, and by reduced bets on a Federal Reserve interest rate hike happening soon.

The gain echoed even sharper jumps in U.S. indexes after Fed Governor Lael Brainard, one of six permanent voters on the U.S. central bank's rate-setting committee, said the Fed should avoid removing support for the economy too quickly. Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 57.06 points, or 0.39 percent, at 14,597.06.

The three main U.S. stock indexes rose between 1.3 and 1.7 percent as the comments solidified the view the Fed would leave interest rates unchanged at a policy meeting next week. .N

Open Text jumped 9 percent to C$85.01 after agreeing to buy Dell-EMC's enterprise content division for $1.62 billion. Text is a firm that is well positioned and well entrenched in the marketplace and I think buying a competitor's assets just takes a headwind out of its way," said Kevin Headland, senior investment strategist at Manulife Investments.

"You look at the overall environment out there and growth is very difficult to come by, especially organically," he added.

Shares in Potash Corp POT.TO and Agrium Inc AGU.TO both ended lower after initially gaining after the companies agreed to merge in a deal that would create a fertilizer giant with an enterprise value of about $36 billion. it comes down to demand for the products - soybean, corn, all those commodities are down. Potash prices are not nearly what they once were," Headland said.

Potash Corp fell 1.4 percent to C$21.83 and Agrium lost 2.5 percent to C$121.04.

Still, the materials group, which includes precious and base metals miners as well as fertilizer companies, added 1.9 percent as gold miners gained with steadier gold prices. GOL/

Six of the TSX's 10 main sectors rose, with advancers barely outnumbering decliners overall.

The heavyweight financials group slipped 0.2 percent, with Fairfax Financial Holdings Ltd FFH.TO down 2 percent at C$729.45 and Manulife Financial Corp MFC.TO down 0.9 percent at C$18.00.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.