Toronto stocks closed higher today, buoyed by takeover activity in the oil and gas sector.
The TSE 300 gained 62.81 points to close at 7,462.03
Energy stocks soared in the wake of Devon Energy’s US$4.6 billion bid for Anderson Exploration.
The deal had the oil and gas sub-index up almost 6% Conglomerates, pipelines, merchandising, utilities and metals and minerals also posted strong gains.
Overall, 11 of the TSE’s 14 sub-indices finished the session higher. Golds, industrial and consumer products suffered losses.
Although, volume was very strong today at 191 million shares, market momentum was more restrained, with 532 advances, 524 declines and 201 issues closing unchanged.
Anderson topped the list of most active stocks on enormous volume of 78 million shares. The stock advance $13.21 to close at $39.61, an eye-popping gain of 50%.
Rio Alto, Pan Canadian and AEC all posted solid gains in the wake of a deal.
The session’s other big traders included CP and banks. CP added $1.42 to close at $57.57.
TD Bank rose 59¢ to $42.14, CIBC climbed $1.09 to $56, and Scotiabank advanced 35¢ to $48.60. BMO and Royal Bank also advanced during the session.
The Hewlett-Packard US$25 billion bid for rival Compaq Computer shone the spotlight on the ongoing troubles within the tech sector. Here at home, Celestica slipped $5.48 to $51, a drop of almost 10%. Other losers include Research in Motion, down $1.67 to $24.65, Nortel Networks, off 35¢ to $9.30, and C-Mac, off $2.67 to $$33.48.
Trading was moderate on the Canadian Venture Exchange. Volume was 4. million shares, with 153 advances, 213 declines and 535 issues unchanged. The CDNX Index closed down 15.89 points at 3,034.46.
On Wall Street, stocks initially rallied on a rise in the National Association of Purchasing Management Index, which aroused hopes that the economic slowdown is nearing conclusion.
Unfortunately the major indices were unable to hold on to this morning’s gains. The Dow Jones industrial average ended well off session highs closing up 47.74 points at 9,997.49.
The Nasdaq composite index sputtered, staging a lacklustre response to news of HP-Compaq deal. It closed down 34.65 points at 1,770.78. The broader-market S&P 500 closed flat, down 0.64 points to at 1,132.94.