TSX Ends Higher For 2nd Straight Day On Strong Economic Data

(RTTNews) - The Canadian stock market ended higher on Wednesday, extending gains to a second consecutive session, amid rising optimism about potential coronavirus vaccines, and on upbeat economic data on labor productivity and expansion in manufacturing activity.

Strong data from China and the U.S. also continued to aid sentiment.

The benchmark S&P/TSX Composite Index closed with a gain of 52.98 points or 0.32% at 16,697.97, after scaling a low of 16,650.03 and a high of 16,725.68 in the session.

The index had ended with a gain of about 0.8% on Tuesday, after falling 1.15% a session earlier.

Shares from consumer staples, telecom, utilities and consumer discretionary sections were the star performers in today's session. Energy stocks declined sharply after oil prices tumbled on concerns about falling gasoline demand.

Information technology and materials shares drifted lower on profit taking. Financial and industrial shares turned in a mixed performance.

The Consumer staples Capped Index climbed as much as 3.5%. The Telecom Services Index rose more than 3%, while the Utilities barometer gained about 2.1% and the Consumer Discretionary Capped Index climbed 1.64%.

Telecom stocks Cogeco Inc. (CGC.TO) and Cogeco Communications (CCA.TO) soared 16.8% and 15%, respectively. Rogers Communications (RCI.B.TO) climbed 4.7%.

These three stocks climbed higher after Altice USA, Inc. (ATUS) presented an offer to acquire 100% of the issued and outstanding shares of Cogeco. The aggregate all-cash consideration offered for all of the outstanding shares of Cogeco Inc. and Cogeco Communications, including those owned by Rogers, is approximately C$10.3 billion, or US$7.8 billion.

Rogers Communications has agreed with Altice USA to purchase all of the Canadian assets of Cogeco Inc. and Cogeco Communications for a net purchase price of approximately $4.9 billion. This deal is conditional upon completion of the Altice USA offer.

Consumer staples stock Alimentation Couche-Tard Inc. (ATD.B.TO) gained nearly 7% on strong results. The company reported a 44% increase in net profit in the first quarter at US$771.1 million or 70 cents per diluted share. It had posted a net profit of US$538.8 million or 48 cents per share a year earlier.

On the economic front, labor productivity in Canada increased by 9.8% in the month of August, after rising by an upwardly revised 4.5% a month earlier.