The Canadian equities market continued to scale up on Wednesday, as the news of BELLUS Health’s (TSX:BLU) acquisition drove a big rally in the healthcare sector. The S&P/TSX Composite Index climbed 43 points during the session to settle at 20,685, posting its longest winning streak since October 2021.
According to Statistics Canada’s latest report, the consumer price index in March rose 4.3% from a year ago, posting its smallest increase in 19 months. However, the report also highlighted elevating mortgage interest costs in Canada, making investors worried about the possible negative impact of the ongoing high-interest rate environment on the economy. This could be one of the key reasons why other key market sectors like technology, real estate, and utilities traded on a weak note yesterday, despite signs of cooling inflation.
Top TSX Composite movers and active stocks
The TSX-listed shares of BELLUS Health nearly doubled in value yesterday to $19.39 per share. These massive gains in BLU stock came after the British pharmaceutical giant GSK plc revealed its intentions to acquire BELLUS Health in a deal worth about US$2 billion.
This total equity value is based on US$14.75 for each BLU’s NASDAQ-listed common share, reflecting a premium of nearly 103% on its Monday closing price of US$7.26 per share. The deal is expected to close this year by the third quarter after receiving necessary regulatory and shareholder approvals.
Capstone Copper, Ero Copper, and Wesdome Gold Mines were also among the top performers on the Toronto Stock Exchange, as they rallied by more than 5% each.
In contrast, Algonquin Power & Utilities tumbled 5.2% to $10.78 per share after its indirect subsidiary, Liberty Utilities, terminated the deal to buy Kentucky Power Company.
Besides that, Ballard Power, Canopy Growth, Innergex Renewable Energy, and Prairiesky Royalty also slipped by at least 3.4% each, making them among the worst-performing TSX Composite components.
Based on their daily trade volume, TD Bank, Royal Bank of Canada, Algonquin Power & Utilities, and Suncor Energy were the most active stocks on the exchange.
TSX today
Crude oil and metals prices were trading with heavy losses early Wednesday morning, as macroeconomic concerns kept commodity investors on edge. Given that, I expect the resource-heavy TSX index to turn negative at the open today with expected big declines in mining and energy stocks.
While no domestic economic releases are due, TSX energy investors may want to monitor the U.S. crude oil stockpiles data this morning.
On the corporate events side, the Montréal-headquartered retailer Metro will announce its latest quarterly results on April 19. Bay Street analysts expect the company to post earnings of $0.94 per share for the March quarter with $4.56 billion in sales.
Market movers on the TSX today
