Major acquisition activity in the Canadian oilpatch helped push the Toronto stock market higher Wednesday.
The S&P/TSX composite index closed up 53.55 points to 12,461.24 amid rising copper and gold prices and mixed earnings reports, while traders digested a 178-point surge Tuesday. The TSX Venture Exchange rose 4.22 points to 1,304.
The energy sector led advancers after Celtic Exploration Ltd. received a friendly takeover offer valued at $3.1 billion from Canadian affiliates of U.S. energy giant Exxon Mobil Corp. The Calgary-based company is mainly focused on natural gas areas in British Columbia and Alberta.
Celtic's shareholders are being offered $24.50 per share and a half-share of a new company, code-named Spinco. Celtic shares surged 45% to $26.29.
And Penn West Petroleum Ltd. has agreed in principle to sell $1.3 billion worth of its non-core properties, representing the equivalent of 12,000 barrels per day of production. Details weren't disclosed and its shares gained 19¢ to $13.85.
The Canadian dollar more than clawed back Tuesday's slide of almost US0.75¢, up US0.91¢ to US102.25¢, amid higher copper prices and positive U.S. economic data.
The loonie fell 0.7¢ Tuesday in the wake of a speech by Bank of Canada governor Mark Carney, which traders interpreted as containing a more dovish tone toward the possibility of hiking rates.
The bank makes its next announcement on interest rates next Tuesday.
U.S. markets were generally weak following earnings disappointments from tech bellwethers IBM and Intel and data that provided a further indication that the housing sector recovery is strengthening.
The Dow Jones industrials were up 5.22 points to 13,557. The Nasdaq composite index rose 2.95 points to 3,104.12 and the S&P 500 added 5.99 points to 1,460.91.
The U.S. Commerce Department said Wednesday that builders broke ground on homes at a seasonally-adjusted annual rate of 872,000 in September, an increase of 15% from the August level.
Intel beat expectations for the third quarter, handing in third-quarter net income of US$2.97 billion, or US58¢ per share after the close Tuesday, down from US$3.47 billion, or US65¢ per share, a year ago. Excluding one time items, earnings came in at US60¢, beating estimates of US50¢.
But it added that the usual bounce in sales due to the holiday season is likely to be cut in half this year as consumers shift from PCs to tablets, which don't use Intel processors and its shares slid US56¢ to US$21.79.
