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Canadian inflation slows to 4.3% in March
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Bellus Health hits over 12-year high after GSK's buyout
deal
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Nuvei Corp slips on Spruce Point's short report
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Loblaw inches higher on new CEO
By Shristi Achar A April 18 (Reuters) - Canadian stocks rose on Tuesday after consumer price data showed signs of slowing inflation, while shares of Bellus Health nearly doubled on GSK's buyout deal.
At 10:05 a.m. ET (1405 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 34.07 points, or 0.17%, at 20,676.04, holding a two-month high.
Data showed Canada's annual consumer inflation slowed to 4.3% in March, from 5.2% in February, as a drop in energy prices helped to keep the consumer price index in check despite a record rise in mortgage costs.
"Investors must be pleased with today's inflation print. It bolsters the likelihood of a soft landing for the Canadian economy and less pressure on the Bank of Canada to go further with interest rates," said Brandon Michael, senior analyst at ABC Funds.
The TSX is set to rise for the eighth straight session, its longest winning streak since January, with financials adding to gains after a positive start to U.S. bank earnings. Cooling inflation and unchanged interest rates in Canada have also buoyed investor sentiment.
"We are back to risk-on mode following earnings from the U.S. banks and the release of important economic data here in Canada," Michael said.
Heavyweight financials rose 0.4%, while rate-sensitive technology stocks added 0.2%. Bellus Health Inc soared 99.7% after GSK's plan to buy the Canada-based drug developer in an all-cash deal for $2 billion, lifting the healthcare sector up 11.9%.
The materials sector , which includes precious and base metal miners, added 0.3% as prices rose on upbeat Chinese economic data. Among other major movers, Nuvei Corp lost 2.4% after Spruce Point Capital Management released a "strong sell" report on the fintech company.
Loblaw Cos Ltd edged up 0.3% after the retailer and its parent company George Weston Ltd appointed Per Bank the new chief executive officer and president of Loblaw. (Reporting by Shristi Achar A in Bengaluru; Editing by Pooja Desai)
