May 20 (Bloomberg) -- Canadian stocks snapped three days of losses as Valeant Pharmaceuticals International Inc. gained before a meeting with Allergan Inc. investors, offsetting losses among the banks ahead of earnings.
Valeant rose 3.7 percent after saying it will discuss an improved offer for the company at meeting in New York next week. CAE Inc., the flight simulator maker, gained 0.9 percent after analysts at Desjardins Securities raised their rating for the shares citing stronger earnings. Element Financial Corp. and Canadian Western Bank slid more than 1.2 percent to lead losses among finance stocks.
The Standard & Poor’s/TSX Composite Index rose 10.45 points, or 0.1 percent, to 14,525.19 at 4 p.m. in Toronto. The equity gauge swung between losses of as much as 0.2 percent and gains of 0.4 percent. It’s up 6.6 percent this year. Trading volume was about 4.1 percent higher than the 30-day average.
“It’s a wait-and-see attitude for the Canadian banks, and also for economic statistics before people get back on the bandwagon,” said Ian Nakamoto, director of research at MacDougall MacDougall & MacTier Inc. in Toronto. His firm manages about C$4.7 billion ($4.31 billion). “People are saying the sluggishness of the first quarter was due to weather, so they’re waiting to see evidence the second or third quarter will pick up.”
Valeant increased 3.7 percent to C$142.76, the most in a month, as health-care stocks paced gains in the S&P/TSX. The company said it will present an improved bid for Allergan shareholders at the May 28 meeting, which will not be an all- cash deal.
Aaron Gal, an analyst at Sanford Bernstein & Co., said in a report that Valeant’s offer should be in the $190 a share range.
Element Financial lost 2.9 percent to C$13.21 and Canadian Western Bank retreated 1.2 percent to C$36.42 to pace declines as 34 of 46 members of the S&P/TSX Financials Index fell.
Toronto-Dominion Bank slipped 0.1 percent to C$51.56 and Royal Bank of Canada added 0.8 percent to C$73.40. The two lenders, the largest in Canada by market value, are scheduled to report second-quarter earnings on May 22.
CAE added 0.9 percent to C$14.68 after Benoit Poirier at Desjardins raised his rating for the stock to buy from hold and increased his price target to C$17 from C$16.
“There is more upside ahead,” Poirier said in the report to clients, with the company benefiting from a solid backlog and improved margins.
HudBay Minerals Inc. rose 0.5 percent to C$10.05 after the metals mining company extended its offer to buy Augusta Resource Corp. to May 27. The all-stock offer values Augusta at about C$453.8 million.
Balmoral Resources Ltd. jumped 20 percent to C$1.30, the highest level since August 2011, after the Vancouver-based exploration company said it confirmed the discovery of a high- grade nickel and copper deposit.