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CANADA STOCKS-TSX nears record, bolstered by strong results, Aecon deal

Published 2017-10-26, 05:41 p/m
© Reuters.  CANADA STOCKS-TSX nears record, bolstered by strong results, Aecon deal
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* TSX up 36.86 points, or 0.23 percent, to 15,891.63

* Six of TSX's 10 main industry groups rose

By Solarina Ho

TORONTO, Oct 26 (Reuters) - Canada's benchmark stock index resumed its upward march on Thursday, propelled by a batch of earnings and CCC International Holding Ltd's acquisition of Aecon Group Inc , although a drop in gold prices tempered gains.

Suncor Energy SU.TO was the most influential positive mover on the index, rising 2.3 percent to C$43.10 after it reported a better-than-expected third-quarter profit. and gas companies as a whole climbed 1.0 percent.

Aecon Group ARE.TO surged 19.4 percent to C$19.73 on news it agreed to be bought by the Chinese construction firm. overall industrials sector rallied broadly as well, climbing 1.5 percent. Waste Connection Inc WCN.TO jumped 3.7 percent to C$92.80 after it reported results and announced a dividend hike.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE rose 36.86 points, or 0.23 percent, to close at 15,891.63. At one point, the index came within 30 points of the 15,943.09 record reached in February.

Six of the index's 10 primary sectors advanced.

"We're so close to breaking the high. But on a relative basis, the U.S. market has done better and will probably do better, because most of them are less resource-oriented," said Irwin Michael, portfolio manager at ABC Funds.

Michael added that strong earnings reported by Amazon.com AMZN.O and Alphabet Inc GOOGL.O after markets closed on Thursday would likely push the U.S. markets to new highs on Friday.

"The sentiment will probably help drag up the Canadian market," he said.

The weighty financials rose 0.5 percent, with Fairfax Financial Holdings Ltd FFH.TO up 3.8 percent at C$664.42.

Tech stocks advanced 0.8 percent.

Materials, made up of resource-based firms, lost 1.8 percent.

Barrick Gold Corp ABX.TO sank 7.7 percent to C$18.64 after disappointing results and uncertainty surrounding its Tanzania gold mine, embroiled in a multi-billion dollar tax dispute. Resources Ltd TECKb.TO slumped 8.4 percent to C$26.81 after reporting third-quarter results that missed expectations and forecasting softer prices for its coal in the fourth quarter. to the pressure was a drop in bullion prices. was down $10 - it did break some interest support here," said Brandon Michael, an analyst at ABC Funds. "We're not too excited about that sector."

Tempering some of the mining losses was a 3.8 percent jump to C$58.33 by Agnico Eagle Mines Ltd AEM.TO on strong results. issues outnumbered declining ones by 127 to 113, for a 1.12-to-1 ratio on the upside. Twenty-three issues touched new 52-week highs, while 10 hit new lows.

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