Remember meForgot password?
    Log in with Twitter

article imageTSX gains as Valeant, CIBC jump on results

    Feb 27, 2014 in Business

By John Tilak

TORONTO (Reuters) - Canada's main stock index rose on Thursday, lifted by gains in Valeant Pharmaceuticals International Inc <VRX.TO> and Canadian Imperial Bank of Commerce <CM.TO> after the companies reported quarterly results.

CIBC shares advanced 1.8 percent after the lender's first-quarter profit jumped by 50 percent, driven by stronger domestic lending profits and a gain on the sale of half of its Aeroplan credit card portfolio to Toronto-Dominion Bank <TD.TO>.

TD, the country's second-largest lender, reported a 15 percent rise in first-quarter profit and boosted its dividend by 9 percent. The stock climbed 0.5 percent.

Investors also digested data showing a rise in orders for long-lasting U.S. manufactured goods excluding transportation last month. Separate figures indicated that the number of Americans filing new applications for unemployment benefits gained last week.<ID: nL1N0LW132>

"The market is looking on the bright side of things," said Arthur Salzer, executive director and chief executive officer of Northland Wealth Management.

"The banks are in a sweet spot where you would want to own them. We've been pretty pleased with the sector," he said. "The yield curve is a good environment for the banks, and their wealth management departments are firing on all cylinders."

The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> was up 35.64 points, or 0.25 percent, at 14,224.22.

Six of the 10 main sectors on the index were higher.

Financials, the index's most heavily weighted sector, added 0.4 percent, driven by CIBC and TD.

Gold-mining shares showed the biggest gain, climbing 1.7 percent. Goldcorp Inc <G.TO> advanced 2 percent to C$30.75, and Barrick Gold Corp <ABX.TO> rose 0.7 percent to C$23.29.

In other corporate news, Valeant posted a quarterly profit driven by the acquisition of contact lens maker Bausch & Lomb Holdings Inc. The stock was up 1.8 percent at C$165.26.

Catamaran Corp <CCT.TO> tumbled 10.3 percent, to C$51.70, after the pharmacy benefits manager reported quarterly results and gave an outlook for the year.

(Editing by Stephen Powell)

More about cbusiness, US, Markets, Canada, Stocks
Latest News
Top News