Valeant Keeps TSX At Record Highs -- Canadian Commentary

(RTTNews) - Canadian stocks inched higher Tuesday, holding record highs as drug maker Valeant rallied on upbeat earnings news.

The TSX Composite Index was up 39.59 points to 16,131.79. However, gauges of most sectors other than health care were lower. Oil stocks paused after a strong recent upswing.

Valeant (VRX.TO) skyrocketed 16.6 percent after beating earnings and revenue estimates.

"Our strong third-quarter performance demonstrates our continued progress in the turnaround of Valeant. Driven by solid execution in our Bausch + Lomb/International segment and our Salix business, we delivered strong organic revenue growth across approximately 77% of our business in the quarter," said Joseph Papa, CEO, Valeant.

Canadian Natural (CNQ, CNQ.TO) Tuesday announced that its 2018 capital budget is targeted at approximately C$4.3 billion, a bit less than 2017, excluding the Athabasca Oil Sands Project or AOSP acquisition capital. Production is set to rise 17%. CNQ was down 1 percent.

Centerra Gold (CG.TO) has acquired AuRico Metals for $310 million in a friendly takeover. Shares fell 3.1 percent.

BCE (BCE.TO) is acquiring AlarmForce Industries (AF.TO) in a deal valued at $166 million. Shares rose fractionally.

The Bank of Canada should continue to weigh inflation data in determing monetary policy, according to BoC governor Stephen Poloz.

"The fundamental drivers of inflation, along with identifiable short-term factors, can explain inflation to a degree that is well within normal statistical tolerance," said Poloz.