TSX rises with bank shares; Hudson's Bay surges on call to go private

Mon Jun 19, 2017 5:07pm EDT
 
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By Fergal Smith

OTTAWA (Reuters) - Canada's main stock index rose on Monday, extending its recovery from a six-month low last week, as heavyweight financial shares rallied and after Hudson's Bay Co got a boost from an investor request that the company explore strategic options.

The Toronto Stock Exchange's S&P/TSX composite index closed up 73.5 points, or 0.48 percent, at 15,266.04.

It follows a 1.8 percent drop for the index last week. On Thursday, it touched its lowest intraday since Dec. 5 at 15,077.95.

"I think we were long overdue for a rally and I think we are getting it here," said John Kinsey, portfolio manager at Caldwell Securities.

U.S. activist investor Jonathan Litt called for Hudson's Bay to consider going private and to monetize its vast real estate holdings, sending shares in the department store retailer up 15.1 percent to C$10.22.

The overall consumer discretionary group climbed 1.5 percent, while the heavyweight financial services sector rose 0.8 percent, led by gains for the country's major banks.

Royal Bank of Canada, Canada's biggest lender by assets and market value, advanced 0.8 percent to C$94.30.

Investors have been encouraged by the Bank of Canada's greater confidence in the outlook for the country's economy, Kinsey said.   Continued...

 
FILE PHOTO - A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, Ontario, Canada on June 23, 2014.  REUTERS/Mark Blinch/File Photo