TSX climbs to 11-day high as bond yields ease
EWC•Canada’s S&P/TSX Composite rose 0.4% to 35,649.51, its highest close since September 25, as bond-market pressure eased. Utilities and metal mining shares led gains, while Emera agreed to buy Canadian Utilities for C$14.3 billion in stock.
1. Index reaches 11-day high
The S&P/TSX Composite Index ended up 130.96 points, or 0.4%, at 35,649.51, its highest closing level since September 25. Utilities rose 1.3% as lower bond yields increased the attractiveness of high-dividend-paying shares, while materials added 0.4% as gold recovered from an earlier two-month low.
2. Emera deal announced
Emera said it would buy Canadian Utilities for C$14.3 billion in stock. ATCO, which holds nearly 37% of Canadian Utilities’ non-voting shares and all of its voting shares, said it would separate into a publicly traded industrial services company. Emera shares fell 2.9%, Canadian Utilities declined nearly 2%, and ATCO rose 9.2%.
3. Other sectors diverge
Energy fell 0.6% and industrials declined 0.7%, with railroad shares losing ground. U.S. crude futures settled up 1 cent at $89.44 a barrel after earlier reaching a five-week low of $86.86.
