TSX Closes Near 40 Pts Higher, Buoyed By Commodity Prices; Increasing Number of Listed Cos Going Private — TradingView News

Canada’s main stock market recorded its first win of the week and April on Wednesday in gaining near 40 points, with the resources heavy Toronto Stock Exchange buoyed by higher gold and oil prices. Moves in commodity prices in particular — and the regular release of key economic numbers too — continue to dictate how the TSX tends to perform daily.

But the TSX did lose half its gains over the last hour Wednesday. Maybe overall market sentiment has been hurt a little as there is an interesting, and maybe even potentially worrying, underlying trend taking hold across the index, that stock pickers might be wary of. An increasingly number of high profile and popular Canadian listed companies are going, or thinking about going, private.

Of commodities today, gold closed at a fresh record for the seventh-straight record session, pushing past the US$2,300 mark for the first time on expectations lower interest rates are on the way, even as a report showed US private-sector employment rose more than expected last month. Gold for June delivery closed up $33.20 to settle at US$2,315.00 per ounce.

Also, West Texas Intermediate crude oil closed at its highest level in more than five months on Wednesday, but gave up some early gains after a report showed an unexpected rise in US oil inventories. WTI crude for May delivery closed up $0.28 to settle at US$85.43, the highest since late October, but down from session highs of $86.20. June Brent crude, the global benchmark, was last seen up $0.46 to US$89.38.

Among sectors, most were higher, led by Health Care up 3.9% and Battery Metals up 2.25%, while both Base Metals and Energy were up about 1.5%. No index was down more than 1%.

On the recent trend in going private, Indigo Books & Music Inc. IDG, Canada’s leading book and lifestyle retailer, was overnight Tuesday the latest to go down this path in agreeing to be bought out fully by Trilogy Investments LP and Trilogy Retail Holdings Inc. Under the transaction, which is expected to close in June, Trilogy will buy all of the issued and outstanding common shares of the company that Trilogy, its affiliates, and joint actors do not currently own for $2.50 in cash per share.

Indigo’s shares jumped more than 20% today to just under the offer price.

Nuvei NVEI on Monday said it had entered into a definitive arrangement agreement to be taken private by Advent International, with the support of each of the company’s holders of multiple voting shares, being Philip Fayer, certain investment funds managed by Novacap Management and Caisse de depot et placement du Quebec, in an all-cash transaction which values the electronic-payments company at about US$6.3 billion.

The Globe and Mail had said before Monday’s news that if Nuvei privatizes, it would be the eighth technology company out of the 20 that went public on the TSX during a flurry of COVID-19-era offerings in 2020 and 2021 to leave the public markets.

Meanwhile, the Chief Executive of Lightspeed LSPD, Dax Dasilva, recently told Bloomberg the public market is a “good place” for the Montreal-based company, but its board of directors has a responsibility to evaluate all strategic options, including privatization. Lightstpeed for its part earlier Wednesday announced cost reductions, a share repurchase program, and reaffirmed its focus on profitable growth.

Jamie Murray, Head of Research at the Murray Wealth Group, was asked on BNN Bloomberg TV shortly before the close of trade today if he thought Lightspeed might actually go private. Murray said it will depend on how the next year goes for the company. “If the share price doesn’t respond and they are making the right decisions, the free cash flow starts to improve and the valuation doesn’t really see it, then sure anything would be on the table.” Murray added the company will wait first to see how the market responds to Wednesday’s moves.