Roundup: Canadian stock market rises on Nexen deal
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E-mail Xinhua, December 11, 2012
The Canadian stock market was higher on Monday as the energy sector climbed after Canadian government approved foreign bids for two big Canadian energy companies, Nexen and Progress Energy Resources.
The benchmark S&P/TSX Composite index jumped 70.88 points, or 0.58 percent, to 12,230.47 while S&P/TSX Venture Composite index rose 0.68 points, or 0.06 percent, to 1,186.74.
Shares of Nexen Inc. and Progress Energy Resources closed Monday trading with double-digit gains as investors in the two firms welcomed news that Ottawa approved their takeover by two foreign state-owned enterprises, China National Offshore Oil Corporation and Malaysian state-controlled energy company Petronas.
Gains in these two stocks lifted the energy sector up by about 1 percent and provide support for the market. Nexen shares rose 3.15 Canadian dollars or nearly 14 percent to close at 26.44 Canadian dollars apiece. Progress Energy shares rose by 13.37 percent to 21.96 Canadian dollars apiece.
But shares of some smaller oilsands companies dipped on worries that the federal government's new restrictive conditions on takeovers by state-owned companies would make it less likely for them to be the targeted of other similar takeover bids.
Elsewhere in the sector, Suncor Energy, Canada's largest energy company and a dominant oilsands producer, fell 0.6 percent to 32.04 Canadian dollars a share over investors'concerns about more limited investment in the oilsands industry.
The metals and mining sector increased over 2 percent on the back of strong gold and copper prices. Canadian diversified miner Teck Resources rose 2.11 percent to 35.33 Canadian dollars per share. Gold giant Barrick Gold was up 1.5 percent to 33.77 Canadian dollars per share.
The industrial sector recovered from last week's losses to close mostly higher and was up 0.77 percent.
On the economic front, Canada Mortgage and Housing Corporation reported that the pace of housing starts fell in November for a third straight month in Canada, which was mainly attributable to declines in single-detached and multi-unit housing construction in Ontario and British Columbia provinces.
In currency, the Canadian dollar continued to run up to trade at 1.0139 U.S. dollars at 5 p.m. local time (2200 GMT) on Monday, compared to 1.0091 U.S. dollar last Friday. Endi
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