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Uni-Select hits record high as LKQ buys co
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TSX rises 0.7%
By Johann M Cherian Feb 27 (Reuters) - Canada's TSX stock index advanced on Monday buoyed by gains in industrials and materials stocks tracking a rebound in global equities from a selloff in the previous week, while Uni-Select hit an all-time intraday high on a buyout deal.
Uni-Select Inc surged 16.1% after LKQ Corp said it would buy the auto parts distributor for about C$2.8 billion ($2.06 billion).
The consumer discretionary sector housing Uni-Select jumped 1%.
Global markets recovered after being hammered last week as unexpectedly upbeat economic data from the United States and Europe intensified fears of central banks sticking to their hawkish rhetoric for longer. "What you're seeing today is a relief rally. People are buying some names today that got cheap last week," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth. "Some of the names that ran significantly in January got a little bit cheaper in the middle of February." The industrials sector surged 1% and the materials sector rose 1.3%. Demand for equities rose in January as investors were hopeful that the Bank of Canada was nearing the end of its fastest monetary tightening spree. However, markets hit a stalling point this month as investors were wary of more rate hikes out of the world's largest economy. A majority of market participants expect the Canadian central bank to not raise rates at its upcoming March meeting.
The Toronto Stock Exchange's S&P/TSX composite index marked its worst week this year on Friday, falling 1.4%.
At 10:14 a.m. ET (15:14 GMT), the TSX index was up 147.63 points, or 0.73%, at 20,366.82. Toronto-Dominion Bank fell 0.1% after the lender said it would pay $1.21 billion to settle a litigation accusing the bank of contributing to imprisoned Ponzi schemer Allen Stanford's fraud. ($1 = 1.3565 Canadian dollars) (Reporting by Johann M Cherian in Bengaluru; Editing by Shailesh Kuber)
