RTTNews - Bay Street stocks have surged again on Monday, boosted by gains in commodity prices and a strong day for U.S. stocks. The market is headed toward a five-week closing high.
The S&P/TSX Composite Index surged 150.07 points or 1.45% to 10,519.49 points. The index is on pace for a fifth straight positive close.
Mining stocks have jumped 5.2%. First Quantum (FM.TO) has rallied 7.1%, Teck Resources (TCK.B.TO) has gained 6.3% and HudBay (HBM.TO) is up 4.9%.
Materials stocks are up 2.3% and gold stocks have added 2.1%. Agnico-Eagles (AEM.TO) has gained 2.9%, Eldorado (ELD.TO) is up 2.5% and Goldcorp (G.TO) has added 2.3%.
On corporate news, Canadian Hydro Developers (KHD.TO) has surged nearly 34.4% as TransAlta (TA.TO) announced that it intends to make an all-cash offer to acquire the Calgary-based company at a price of C$4.55 per share. The proposed transaction has an enterprise value of approximately C$1.5 billion. TransAlta stocks is down 0.4%.
Labopharm (DDS.TO) plunged 16.4% after the company's new anti-depressant drug was not approved by the FDA because of problems at a supplier's factory, according to The Canadian Press.
National Fuel Gas announced that it has purchased Ivanhoe Energy's (IE.TO) oil and gas operations for about US$40 million. Ivanhoe shares are up 2%.
Hillsborough Resources Limited (HLB.TO) has soared almost 40% after the coal mining company announced it has entered into a revised agreement with Vitol Group whereby Vitol would pay US$3.03 million in cash , including net debt.
In economic news, Statistics Canada said wholesale sales in current dollars fell 0.3% to $40.1 billion in May, following a revised drop of 0.7% in April. In volume terms, wholesale sales were unchanged in May. Economists were looking for a drop of 2.5% from a month earlier.
Meanwhile, foreign acquisitions of Canadian securities reached a five-year high of C$18.9 billion in the month, more than double the revised C$9.05 billion from the previous month, fueled by new issues of Canadian corporate bonds.
Across the border, data released Monday morning showed leading indicators rose 0.7% in the month of June. An increase of 0.5% was forecast, compared to a rise of 1.25% in the month of May.
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