Canada’s main stock index gained on Tuesday as the energy group rose on higher oil prices and Valeant Pharmaceuticals International Inc (VRX.TO) surged after it said it would make required securities filings to Canadian regulators.
Laval, Quebec-based Valeant, which is under scrutiny over its drug pricing, business practices and accounting, rose 4.5 per cent to $36.41 after saying it planned to make the filings on or before June 10.
Canadian Natural Resources added 0.8 per cent to $38.03 and pipeline operator Enbridge Inc (ENB.TO) rose 1.6 per cent to $52.96.
Oil touched a six-month high on Tuesday as outages in Nigeria and Canada lent support and despite a deal between Libyan factions bringing the prospect of higher output a step closer.
U.S. crude prices were up 0.6 per cent to $48.02 a barrel, while Brent crude added 0.3 per cent to $49.11.
The TSX’s energy group climbed 1.1 per cent, although some companies are facing renewed disruption to operations from a massive wildfire around the Fort McMurray oil sands hub.
Suncor Energy Inc (SU.TO) advanced 0.5 per cent to $35.16, after saying it had started a staged shutdown of its base plant in the region.
Junior oil sands producer Connacher Oil and Gas Ltd (CLC.TO) filed for protection from creditors at an Alberta court on Monday, a victim of the two-year slump in global crude prices. Its shares are trading at 14 Canadian cents.
At 10:26 a.m. EDT (1426 GMT), the Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) was up 47.29 points, or 0.34 per cent, at 13,940.78.
Only four of the 10 main sectors were higher on the day, although advancers outnumbered decliners by three to two.
The materials group, which includes precious and base metals miners and fertilizer companies, added 1.2 percent, with Potash Corp (POT.TO) gaining 1.9 per cent to $21.12.
Shares of Bombardier Inc (BBDb.TO), which is in talks with Canada’s government for financial backing, declined 2 per cent to $1.92.
A senior executive with Embraer SA (ERJ.N) told Reuters on Monday that the Brazilian plane maker may challenge the state funding received by its Canadian rival at the World Trade Organization (WTO).