BNN's closing bell update: October 17, 2017
Canada's main stock index inched higher on Tuesday, helped by a jump in Bombardier Inc shares and higher financial stocks.
Bombardier Inc (BBDb.TO) ended up 15.7 per cent at $2.73 after soaring as much as 26.4 per cent, following a game-changing deal with Airbus SE.
The Canadian plane and train maker said it would sell a majority stake in its CSeries jetliner program to the European aircraft manufacturer, a move that helps secure the CSeries' future and solves a number of issues for Bombardier, including its dispute with Boeing Co.
The overall industrials group rose 0.4 per cent.
"It could be a win-win-win scenario. I think time will tell. ... It seems like a very creative way to perhaps get a win out of the scenario," said Kevin Headland, senior investment strategist at Manulife Investments.
Financial stocks, which makes up about a third of the index's weight, gained 0.2 per cent. Royal Bank of Canada (RY.TO) was the biggest driver of the index's gains and was up 0.5 per cent at $99.78. Thomson Reuters was another top gainer, rising 1.7 per cent to $60.19.
The Toronto Stock Exchange's S&P/TSX composite index edged up 14.2 points, or 0.09 per cent, to finish at 15,816.90.
Six out of the index's 10 main groups advanced.
"There's no material end in sight for this slow grind higher. ... It should end the year in positive territory," said Headland, adding that there did not seem to be too much negative momentum going forward.
Oil and gas companies rose 0.3 per cent alongside slightly firmer crude prices, which advanced on Middle East tensions and data that showed a bigger-than-expected draw in inventories.
Capping the index's gains was a 0.7 per cent fall in mining and other resource stocks, as base and precious metal prices fell on a stronger U.S. dollar.
First Quantum Minerals Ltd (FM.TO) was the index's biggest drag, stumbling 4.1 per cent to $15.19, while Teck Resources (TECKb.TO) fell 2.3 per cent to $28.16. Iamgold Corp (IAM.TO) sank 5.2 per cent to $7.09.
Aphria Inc (APH.TO) shares tumbled 13.4 per cent to $6.86 after the operator of the Toronto Stock Exchange said that cannabis companies with U.S. interests would come under heightened scrutiny and could be delisted.
Canopy Growth Corp (WEED.TO) fell 4.7 per cent to $12.52, while the overall health care group gave back 1.6 per cent.
Declining issues outnumbered advancing ones on the TSX by 132 to 108, for a 1.22-to-1 ratio on the downside.