By Malcolm Morrison, The Canadian Press
TORONTO - New life has been breathed into the March stock market rally by a major deal in the Canadian energy sector and another stab at helping American banks remove as much as US$1 trillion in bad loans from their books.
Toronto's S&P/TSX composite index surged 367.3 points to 8,873.6 late in the morning after Suncor Energy Inc. (TSX:SU) and Petro-Canada (TSX:PCA) announced a merger in an all-stock deal creating a combined company valued at $43.3 billion.
The new enterprise is to operate under the Suncor name with existing Petro-Canada shareholders owning 40 per cent.
The Canadian dollar was ahead 0.61 of a cent to 81.29 cents US.
New York's Dow Jones industrial average gained 280 points to 7,558.4.
The Nasdaq composite index jumped 52.16 points to 1,509.43. The S&P 500 index moved up 30.15 points to 798.7 after the Treasury Department announced a plan to revive lending that would rely on the government's US$700-billion financial rescue fund, the Federal Reserve and the Federal Deposit Insurance Corp., as well as private investors.
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