Canada Stocks: Toronto market extends winning streak on 'soft landing' hopes

BELLUS Health

18/04/2023 21:40

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      TSX ends up 0.2% at 20,684.68
    

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      Posts its highest closing level since Feb. 15
    

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      Canadian inflation slows to 4.3% in March
    

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      Bellus Health jumps after buyout deal
    

  
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    By Shristi  Achar A and Fergal Smith
       April 18 (Reuters) - Canada's main stock market rose on
Tuesday to its highest closing level in two months, as easing
inflation raised prospects of the domestic economy avoiding
recession and shares of Bellus Health nearly doubled in price
after a buyout deal. 
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 42.71 points, or 0.2%, at 20,684.68, its
highest closing level since Feb. 15.
    It was the eighth straight day of gains for the index, which
is the longest winning streak since January.
    Canada's annual inflation rate eased to 4.3% in March from
5.2% in February as a decline in energy prices helped offset a
record spike in mortgage costs.    
    "Investors must be pleased with today's inflation print,"
said Brandon Michael, senior analyst at ABC Funds. "It bolsters
the likelihood of a soft landing for the Canadian economy and
(puts) less pressure on the Bank of Canada to go further with
interest rates."
    Bank of Canada Governor Tiff Macklem said that the current
forecast is for positive but weak growth for the rest of the
year, and therefore not a recession, and that by most people's
measures would be a "soft landing."
    Financials rose 0.8%, with the heavily weighted sector
adding to recent gains after a positive start to U.S. bank
earnings reporting.
    "Wall Street is becoming a little bit more optimistic as
more companies delivered strong earnings," Edward Moya, a senior
market analyst at OANDA, said in a note.
    Bellus Health Inc  BLU.TO  shares soared 99.7% as GSK
 GSK.L  said it would buy the Canada-based drug developer in an
all-cash deal for $2 billion.
    Among other movers, shares of fintech company Nuvei Corp
 NVEI.TO  fell 0.8% after short seller Spruce Point Capital
Management LLC alleged a recent acquisition is obscuring the
firm's growth challenges.

 (Reporting by Fergal Smith; Additional reporting by Shristi
Achar A in Bengaluru; Editing by Pooja Desai and Sandra Maler)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))