S&P/TSX composite starts September in record territory on railway gains
TORONTO — Canada’s main stock index started September in record territory as the country’s two largest railways pushed the industrials sector to an all-time high.
Shares of Canadian Pacific Railways Ltd. and Canadian National Railway Co. rose 5.1 and 3.8 per cent, respectively, Wednesday a day after the U.S. transportation regulator rejected CN’s proposed voting trust for Kansas City Southern.
That opened the door for rival CP to renew its push for KCS to accept its lower bid, arguing there is less regulatory risk.
Both railway shares got a lift even though the news is potentially better for CP than CN.
“I think both stocks have been lagging a little bit just because this has been happening over both heads,” said Michael Currie, vice-president and investment adviser at TD Wealth.
“Until it gets settled. some investors have been sitting on the sidelines. So I think it just gets us a little closer to a decision and people are…
