(Adds portfolio manager quotes, details on Valeant and consumer
staples, updates prices)
* TSX down 246.42 points, or 1.99 percent, at 12,143.46
* Eight of the TSX's 10 main groups fall
By Fergal Smith
TORONTO, Jan 25 (Reuters) - Canada's main stock index fell
on Monday as last week's crude-induced rally fizzled out and a
fall in oil prices weighed on energy companies and financial
shares.
The index scored its biggest rally in more than four years
on Friday, closing 2.6 percent higher for the week. But optimism
that central banks in Europe and Japan will increase policy
stimulus gave way to concern about the growth outlook and
renewed pressure on crude oil prices.
"There's still a lot of uncertainty out there, said Bryden
Teich, associate portfolio manager at Avenue Investment
Management. "I think you are sort of seeing that filter back
into the markets today."
Oil prices recoiled 6 percent after news that Iraq's output
reached a record last month returned attention to a market glut
that sent prices to 12-year lows last week.
Teich is cautious about the outlook for Canadian stocks in
the expectation that oil will "test new lows."
Canadian Natural Resources CNQ.TO fell 4.4 percent to
C$24.91, while Suncor Energy Inc SU.TO was down 4.5 percent at
C$29.92. The overall energy group fell 5.1 percent.
The oil price rout and related Canadian dollar slide is
starting to hurt corporate profits, from rail and retail to
seemingly unrelated sectors like telecoms.
Earnings are projected to fall by 28.3 percent in 2016
compared with a year ago, according to Thomson Reuters
SmartEstimates data.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE fell 246.42 points, or 1.99 percent, to 12,143.16.
Eight of the index's 10 main groups were in negative territory.
Financial sector stocks, considered bellwethers for the
overall economy, fell 2.6 percent.
Royal Bank of Canada RY.TO fell 3.4 percent to C$66.97,
while Toronto-Dominion Bank TD.TO declined 3.0 percent to
C$50.13.
Bank stocks have "a lot of commercial loan exposure to
regular commercial business in Alberta," according to Teich.
Alberta's economy is closely tied to crude oil prices.
Eldorado Gold Corp ELD.TO slumped 7.7 percent to C$2.98
after it said it expects to write down the value of its assets
in Greece by $1.2-$1.6 billion after suspending most operations
there.
Other gold miners rose as bullion gained. GOL/
Valeant Pharmaceuticals International Inc (N:VRX) VRX.TO rose 5.5
percent to C$132.37. The company's ailing chief executive,
Michael Pearson (L:PSON), said he was on the road to recovery but was
uncertain about when he would return from medical leave.
The consumer staples group rose 0.4 percent, including a 0.7
percent gain for Loblaw Companies Ltd L.TO to C$65.25.