By Robb M. Stewart
Canadian stocks got off to a strong start this week, following the upward momentum on Wall Street. Investors are eagerly awaiting the upcoming earnings season but are still cautious due to global uncertainties and tension in the Middle East.
Broad-Based Gains in Midday Trading
In midday trading, a wide range of sectors experienced gains in the Toronto stock market. The technology and finance sectors led the charge. However, the latest Canadian trade data suggests that growth may have remained subdued in August. Manufacturing sales increased by a modest 0.7% compared to the previous month, falling short of the estimated 1% advance. Higher prices contributed to this growth, while sales volumes declined by 0.7%.
Positive Movement in Key Indices
The S&P/TSX Composite Index jumped by 0.7% to reach 19,598.35 points, reflecting the overall positive sentiment. Additionally, the blue-chip S&P/TSX 60 index also saw a 0.7% increase, reaching 1,178.42 points.
Banks Ride the Wave
Leading the charge among the major banks were Royal Bank of Canada and Toronto-Dominion Bank, both experiencing gains of 1.1%.
Notable Market Movers
Two companies made significant moves in the market:
- Logistec's shares soared by 12% to C$64.33 after the Montreal-based cargo-services company agreed to a takeover by private-equity firm Blue Wolf Capital Partners. This deal values Logistec at approximately CAD 1.2 billion ($878.5 million).
- Spark Power witnessed an astounding 61% surge in share prices, reaching C$0.79. The electrical-services company has agreed to a takeover by private-equity firm American Pacific Group in a deal worth around CAD 140 million, including debt.