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TSX ends up 0.2% at 20,684.68
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Posts its highest closing level since Feb. 15
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Canadian inflation slows to 4.3% in March
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Bellus Health jumps after buyout deal
(Adds details on activity; updates prices to close)
By Shristi Achar A and Fergal Smith
April 18 (Reuters) - Canada's main stock market rose on
Tuesday to its highest closing level in two months, as easing
inflation raised prospects of the domestic economy avoiding
recession and shares of Bellus Health nearly doubling in price
after a buyout deal.
The Toronto Stock Exchange's S&P/TSX composite index ended up 42.71 points, or 0.2%, at 20,684.68, its highest closing level since Feb. 15, preliminary data showed. It was the eighth straight day of gains for the index, which is the longest winning streak since January. Canada's annual inflation rate eased to 4.3% in March from 5.2% in February as a decline in energy prices helped offset a record spike in mortgage costs.
"Investors must be pleased with today's inflation print," said Brandon Michael, senior analyst at ABC Funds. "It bolsters the likelihood of a soft landing for the Canadian economy and (puts) less pressure on the Bank of Canada to go further with interest rates." Financials rose 0.8%, with the heavily weighted sector adding to recent gains after a positive start to U.S. bank earnings reporting. "Wall Street is becoming a little bit more optimistic as more companies delivered strong earnings," Edward Moya, a senior market analyst at OANDA, said in a note. Bellus Health Inc shares soared 99.7% as GSK said it would buy the Canada-based drug developer in an all-cash deal for $2 billion. (Reporting by Fergal Smith; Additional reporting by Shristi Achar A in Bengaluru; Editing by Pooja Desai and Sandra Maler)
