Canada’s main stock index edged higher on Tuesday, led by energy and industrial stocks, while miner Lundin Mining jumped to a three-week high on buying a majority stake in a copper mine.
Lundin Mining Corp soared 6.5% to nearly a three-week high after the miner said it would buy a 51% stake in Chile’s Caserones copper mine for about $950 million to expand its exposure to the red metal crucial for the green energy transition.
The broader materials sector edged 0.1% up tracking gains in bullion prices.
“Usually, the stock of the acquirer falls because they have to shell out cash,” said Allan Small, senior investment adviser at Allan Small Financial Group.
“But here it seems the market likes the deal and is giving a thumbs up with respect to the acquisition.”
At 10:10 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 61.34 points, or 0.31%, at 19,686.08.
Energy stocks added 0.8%, tracking oil prices amid supply disruption risks from Iraqi Kurdistan.
The TSX is on course for a second straight month of losses in March as monetary tightening worries and a global banking sector fraught spooked investors. Still, the bourse is up for the quarter underpinned by gains from January as equities bounced back from previous year’s losses.
Brokerage J.P.Morgan raised its price target levels for Bombardier Inc stating that the business jet maker had made considerable progress in shoring up its balance sheet, sending shares of the plane maker 1.7% up. The industrial sector housing the stock added 0.7%
Spartan Delta Corp’s shares surged 6.0% to nearly a two-month high after Crescent Point Energy Corp said it would acquire the oil explorer’s Montney assets in Alberta for C$1.7 billion ($1.24 billion) in an all-cash deal. Crescent also added 1%.
Later in the day at around 4 p.m. ET, Finance Minister Chrystia Freeland will present this year’s budget to parliament.
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