TSX Surges Back Above 13,000 Despite U.S. Rate Hike -- Canadian Commentary

(RTTNews) - Canadian stocks rallied for a second straight session as markets withstood the first US interest rate hike in a decade.

In an historic move, the Federal Open Market Committee decided to raise the target range for the US federal funds rate from near zero to range of 0.25 and 0.50 percent. Looking further out, the Fed sees only "gradual" rate hikes in 2016.

The S&P/TSX Composite Index picked up 1.9 percent to 13,166, powered by gains by rebounding gold and base metal companies.

The Diversified Metals & Mining Index jumped 4.1 percent, while the Gold Index added 4 percent.

Financials rose 1.7 percent, while Valeant led health care shares higher.

Valeant Pharmaceuticals International, Inc. (VRX, VRX.TO) announced the company now expects its fourth-quarter adjusted EPS to be in the range of $2.55 -$2.65, down from its prior outlook of $4.00 - $4.20.

However, the company is projecting 30 percent earnings growth for 2016. Shares added to yesterday's big gains, picking up another 9.3 percent.

Meanwhile, QLT Inc. (QLTI, QLT.TO) said that it has filed a breach of contract lawsuit against Valeant. QLT alleges that Valeant has failed to pay a C$5 Million laser earn-out milestone. QLT was up 0.8 percent.

Energy stocks were the worst performers on the day, stung by cascading crude oil prices, which slipped to fresh 6-year lows near $35 a barrel.

Paladin Energy Limited (PDN.TO, PDN.AX) clarified that there has been no change in its ownership of the Kayelekera Mine in Malawi, responding to a recent article saying they have sold off their interest.

Boralex Inc. (BRX.TO) has entered into an exclusivity agreement with private developers to acquire a 350 MW portfolio of wind power projects in France. Shares rose 5.9 percent.