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CANADA STOCKS-TSX falls as Valeant, Magna plunge

Published 2015-11-05, 10:49 a/m
© Reuters.  CANADA STOCKS-TSX falls as Valeant, Magna plunge
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(Adds portfolio manager comment, updates prices)
* TSX down 119.85 points, or 0.88 percent, at 13,541.97.
* Six of the TSX's 10 main groups fall

TORONTO, Nov 5 (Reuters) - Canada's main stock index fell on
Thursday as a string of disappointing earnings reports and a
fresh slump in drug maker Valeant offset gains among energy
stocks as oil prices edged higher.
The most influential weights on the index included Magna
International Inc MG.TO , which fell 12.5 percent to C$60.88
after reporting a drop in quarterly sales which the auto parts
maker blamed on a strong U.S. dollar.
Valeant Pharmaceutical International Inc VRX.TO slumped 16
percent to C$102, its lowest level since mid-2013, after the
U.S. Senate on Wednesday launched a probe into its strategy of
sharply hiking prices on drugs it acquires.
Major telecom company Telus Corp T.TO declined 2.8 percent
to C$42.51 after reporting a slowdown in wireless growth and a
plan to cut 1,500 jobs.
At 10:35 a.m. ET (1535 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 119.85 points, or
0.88 percent, at 13,541.97.
Six of the index's main 10 groups fell.
Shares of Ontario electric utility Hydro One Ltd
jumped 5.2 percent to C$21.57 on its trading debut.
The stock was priced at C$20.50 last week, at the high end
of a previously announced range.
Six of the index's 10 main groups were lower, with its
heavyweight energy and financial sectors rising.
"I suspect the TSX would be up today if it wasn't for
Valeant," said Irwin Michael, portfolio manager at ABC Funds.
On Telus, which he holds, Michael said: "I think people
maybe were a little disappointed they're going to be cutting
employees."
The materials group retreated 1.9 percent as copper prices
declined 1.4 percent to $5,060 a tonne.
U.S. crude CLc1 prices were down 1.3 percent to $45.73 a
barrel and Brent crude LCOc1 lost 0.6 percent to $48.31, but
the Canadian energy group gained 0.3 percent.
Canadian Natural Resources CNQ.TO jumped 4.8 percent to
C$33.48 after the country's largest independent petroleum
producer reduced its 2015 budget for the fifth time.

($1 = 1.3165 Canadian dollars)

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