Canadian Market Modestly Higher; Bellus Health Soars On Acquisition News

(RTTNews) - The Canadian market is modestly higher a little past noon on Tuesday, thanks to gains in pharma stocks Bellus Health Inc.

Shares from the rest of the sectors are turning in a mixed performance.

Investors, digesting the data on Canadian inflation, now look ahead to crucial economic data from the U.S. for clarity about the state of health of the world's largest economy and the outlook for interest rates.

The benchmark S&P/TSX Composite Index is up 55.44 points or 0.28% at 20,699.41 about a quarter past noon.

Data released by Statistics Canada this morning showed the annual inflation rate in Canada fell to 4.3% in March, the lowest since August 2021, in line with market expectations, and easing from 5.2% in February.

Core inflation rate in Canada rose 4.3% from a year earlier in March 2023, the least since January 2022, and less than forecasts for a 4.4% rise.

The Healthcare Capped Index is soaring more than 11%. Bellus Health Inc (BLU.TO) is zooming nearly 100%, buoyed by GSK's plans to buy the drug developer in an all-cash deal for $2 billion. The British drugmaker has made this move in order to expand its bet on respiratory therapies.

Hut 8 Mining Corp (HUT.TO) is up 5% on huge volumes. Lundin Mining (LUN.TO), Hudbay Minerals (HBM.TO), Shopify Inc (SHOP.TO) and Copper Mountain Mining Corporation (CMMC.TO) are gaining 2 to 3%.

Crescent Point Energy (CPG.TO), Manulife Financial Corporation (MFC.TO), Toronto-Dominion Bank (TD.TO) and Kinross Gold Corporation (K.TO) are up 1 to 1.6%.

Softchoice Corporation (SFTC.TO), Boralex (BLX.TO), Docebo Inc (DCBO.TO) and CCL Industries (CCL.A.TO) are down 2 to 4%.