Canada's benchmark index TSX edges up as oil gains, local acquisitions

Crew Energy

12/08/2024 22:04

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      S&P/TSX closes up 0.43% on jump in crude price
    

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      Tourmaline Oil to buy Crew Energy for C$1.3 bln
    

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      US data on inflation and retail sales this week
    

  
 (Updates with market quotes, investor comments)
    By Promit Mukherjee and Nikhil Sharma
       Aug 12 (Reuters) - Canada's benchmark index inched up on
Monday as calm returned after a week of turmoil, but rising
tensions in the Middle East and upcoming data from the U.S. this
week kept investors on edge. 
    The S&P/TSX composite index  .GSPTSE  closed up 95.01 points
at 22,406.31, rising 0.43%. The increase was further aided by
two major local acquisitions.
    Oil prices  CLc1  surged on Monday to $80.06 a barrel on
fears that rising tensions in the Middle East could lead to a
broader conflict and choke crude oil supplies globally. 
    This fueled the energy stocks index  .SPTTEN  which rose
roughly 3%, and was further boosted by Canada's biggest gas
driller Tourmaline Oil Corp's  TOU.TO  C$1.3 billion ($945.87
million) offer to buy smaller rival Crew Energy  CR.TO . 
    The energy index accounts for close to 18% of the total
weight of the S&P/TSX composite index.
    "The Canadian market obviously welcomes uncertainty in the
Middle East for the oil stocks," said Barry Schwartz, chief
investment officer at Baskin wealth Management.
    "Of course, the world doesn't want to see any of that," he
added, highlighting why investors were on the edge.  
    Canada's materials sector  .GSPTTMT  also logged gains,
pulled up by a 63% spike in Osisko Mining  OSK.TO , which jumped
to the top of the TSX after South Africa-based Gold Fields Ltd
 GFIJ.J  agreed to acquire the Canadian miner for C$2.16 billion
($1.57 billion).
    Barrick Gold  ABX.TO  shares rose 9.4% as the gold miner
beat Wall Street estimates for second-quarter profit, adding to
the sector's rise. Other miners also tracked gains in gold and
copper prices.  GOL/   MET/L 
    Investors were cautious ahead of a host of economic data
expected in the United States this week, including the U.S.
consumer price index due on Wednesday to gauge the Federal
Reserve's stance on its monetary policy.
    "Ideally, we don't want to see too soft data to show that
the U.S. is falling into recession," said Allan Small, senior
investment adviser at Allan Small Financial Group with iA
Private Wealth.
    "But at the same time we don't want to see strong data which
would show us persistent inflation."
    U.S. retail sales data is expected on Friday. 
    Markets are hoping for an interest rate cut at the U.S.
central bank's September meeting.
 ($1 = 1.3744 Canadian dollars)

 (Reporting by Promit Mukherjee in Ottawa and Nikhil Sharma in
Bengaluru; Editing by Shreya Biswas and Jonathan Oatis)
 ((Nikhil.Sharma@thomsonreuters.com))