By - Reuters
By Johann M Cherian
(Reuters) - Canada's commodity-heavy main stock index edged up on Monday to nearly a month's high after energy stocks jumped more than 4%, while Teck Resources surged after rejecting a buyout offer from Glencore.
Teck Resources Ltd advanced 16.5% to touch its highest level in nearly two months after rejecting a $22.5 billion acquisition proposal from Swiss commodity and mining firm Glencore, saying the rival's all-stock offer was inferior to its own planned separation.
At 10:05 a.m. ET (14:05 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 133.52 points, or 0.66%, at 20,233.41.
"Teck is up because usually, the company offering to buy may come back a second time and sweeten the deal," said Allan Small, senior investment advisor at Allan Small Financial Group.
"It (Teck) is a very big Canadian company, so I'm not sure if the government would let the deal through."
The energy sector surged 4.9% to nearly a month's high, tracking oil prices that surged more than 5% after the Organization of the Petroleum Exporting Countries and their allies (OPEC+) over the weekend announced further oil output cuts of around 1.16 million barrels per day. [O/R]
The materials sector added 1.4% as a declining U.S. dollar made bullion cheaper for holders of other currencies. [GOL/]
Bucking the trend, the tech sector dropped 1.0%.
The TSX had an upbeat start to the year, ending January in gains. However, in February and March, the index finished lower as angst surrounding the interest-rate outlook and turmoil in the banking sector strained sentiment.
Still, the bourse managed to eke out a 3.7% gain in its first quarter.
Quebecor Inc rose 0.7% after Veritas Research upgraded to "buy" from "reduce".
Meanwhile, data showed that manufacturing activity contracted to 48.6 in March from 52.4 in the previous month, as economic uncertainty weighed on output and new orders, offsetting easing supply pressures and rising optimism about future growth. A reading below 50 indicates contraction.
(Reporting by Johann M Cherian in Bengaluru)