Canada’s main stock index struggled for direction on Wednesday as gains in technology sector stocks were offset by losses in industrials, while Teck Resources surged on withdrawal of its restructuring proposal.
At 10:05 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 5.74 points, or 0.03%, at 20,445.61.
Teck Resources rose 4% after the miner withdrew its proposed restructuring plan ahead of shareholder votes due later in the day.
“The competing bids have been fighting it out in the court of public opinion and it looks like Glencore has dangled the carrot juicy enough that Teck’s board and management were not able to get the support for their plan and they’ve withdrawn it,” said Brian Madden, chief investment officer at First Avenue Investment Counsel.
The technology stocks rose 1.3%, tracking gains in tech-heavy Nasdaq driven by bullish earnings results from Microsoft and Google parent Alphabet.
The industrials sector, however, capped gains on the index, dropping 0.9% after the shares of transportation company TFI International fell 8.6% on first-quarter profit miss.
The TSX futures have largely been tepid this week, as investors parsed a raft of mixed earnings reports against the backdrop of recession-wary environment.
Among other major movers, Rogers Communications Inc gained 1.9% after the wireless giant reported a better-than-expected quarterly profit, as strong performance of its wireless business unit helped offset weakness in its cable TV business.
Cenovus Energy Inc edged 1.1% lower as its profit more than halved in the first quarter on lower crude oil prices.
Meanwhile, Canadian inflation, excluding food and energy costs, is expected to remain above 3% until the fourth quarter of this year, the median forecast of seven economists surveyed by Reuters showed, dashing hopes on the Bank of Canada cutting interest rates any time soon.
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