TSX flattens with U.S. markets closed
TORONTO — Canada’s main stock index finished on a near flat note Thursday, as U.S. stock markets were closed for the Thanksgiving holiday.
The S&P/TSX composite index scraped out 0.72 of a point to advance to 16,074.30.
Earlier in the day, the materials and energy sectors had helped push the Toronto market up modestly, as the healthcare and consumer staples groups lost ground.
“The positive performance this morning was the result of the resource sector. Both energy and materials were stronger on the day,” said Candice Bangsund, vice-president and portfolio manager at Fiera Capital. “In energy markets we’re seeing encouraging signs toward the rebalancing of the crude market. So we saw energy prices soar to a two-year high this week after a report that indicated a decline in U.S. stockpiles, while there’s also been a disruption in the Keystone pipeline that has helped to sort of boost that optimism that the market is going to find a better balance.”
In currency markets, the Canadian dollar was trading at an average price of 78.65 cents US, up 0.09 of a U.S. cent. That marked the loonie’s third straight day of gains. Key drivers of the currency’s recent upswing are the weakening U.S. dollar and bullishness around the price of oil, which rose $1.19 at the closing of markets Wednesday.
Commodities markets were also closed for the U.S. Thanksgiving holiday on Thursday.
In economic news, Statistics Canada reported retail sales in September were up 0.1 per cent to $49.1 billion for the month, boosted by sales at gasoline stations as prices climbed due to disruptions caused by hurricane Harvey. Economists however said it appears consumer spending has cooled after a hot start to the year.
Fast-growing Aurora Cannabis Inc. struck twice Thursday, announcing the purchase of greenhouse design firm Larssen Ltd. in the morning and medical marijuana applicant H2 Biopharma Inc. of Lachute, Que., for up to $25 million in stock after markets closed.
The Alberta-based cannabis producer said Larssen’s expertise will “play an instrumental role” in the final design of H2’s 4,300-square-metre cannabis production facility in the Montreal area, which it said is 80 per cent complete.
Aurora said it intends to use its ownership of Larssen to pressure other cannabis producers to enter partnerships. Larssen is involved with more than 15 cannabis industry clients globally, including five Canadian licensed producers, but its Canadian deals will be reassessed once the buyout announced Thursday is completed, it said.
“We’re going to certainly encourage those to proceed but we’re going to require some level of partnership, whether that be an equity stake or a supply agreement or other things,” said Aurora vice-president Cam Battley. “We’re open to various formulae.”
He wouldn’t name the five Canadian companies, but said they don’t include CanniMed Therapeutics Inc., against which it is pursuing an all-stock hostile takeover bid, or Newstrike Resources Ltd., a company CanniMed is attempting to buy.
Financial terms of the Larssen deal were not disclosed, but Aurora said they include performance-based payments.
Larssen, which has offices in Denmark and Burlington, Ont., is designing, engineering and overseeing construction of the half-built Aurora Sky cannabis greenhouse near the Edmonton International Airport which will have capacity to produce 100,000 kilograms of cannabis per year.
H2 Biopharma is a late-stage medical marijuana firm. Its facility is to produce up to 4,500 kilograms of cannabis per year and is on property that will allow expansion.