TSX closes higher as Valeant CEO leaves
The main index of the Toronto Stock Exchange was lifted Monday as shares in pharma firm Valeant soared on news that activist investor William Ackman had joined the board and chief executive Michael Pearson is leaving the troubled company.
Valeant stock gained along with Bombardier, with hopes that the aircraft firm may receive a financial boost from Ottawa in Tuesday’s budget.
Oil prices also gained following early losses, helping energy and financials.
Asian markets closed their session mainly lower although China managed a stronger finish despite warnings over company debt. European indexes closed down slightly.
Wall Street managed narrow gains as oil prices increased and Apple announced some new products.
The S&P/TSX Composite Index closed up 64.02 (0.47 per cent)
The Dow Jones closed up 21.57 (0.12 per cent)
Oil is trending higher (Brent $41.60, WTI $39.91 at 4.35pm)
Gold is trending lower (1244.30 at 4.35pm)
The loonie is valued at U$0.7642
Federal budget awaited
The highly anticipated Canadian federal budget is finally revealed Tuesday and will answer questions that have been on the lips of analysts and investors for some time. How big will the deficit be? Will there be help for Bombardier? What are the plans for infrastructure spending? The list goes on. Finance minister Bill Morneau has the task of trying to stimulate the economy amid turbulent oil prices while being mindful of the risk from large household debt and the heat in some housing markets.
In a poll from Ipsos for Global News, Canadians said that healthcare and taxes are among the priorities with middle classes keen to see some relief.
Penn West sells Slave Point, other assets
Calgary-based Penn West says it has sold some of its assets including its Slave Point property in Alberta. The sale will bring the firm $148 million while other asset sales will add another $80 million. CFO David Dyck said the former core Slave Point asset was not slated for any development for this year at least. The $228 million from the sales will enable the firm to invest in other ongoing projects.