(New throughout, updates prices and market activity, adds
comments from portfolio manager, details on health care and
financial stocks)
* TSX closed down 117.96 points, or 0.91 percent, at
12,813.40
* Eight of the TSX's 10 main groups fall
By Fergal Smith
TORONTO, Feb 19 (Reuters) - Canada's main stock index fell
on Friday, led by a drop in health care, energy and financial
sector stocks, as crude oil prices tumbled and domestic retail
sales disappointed.
The health care group fell 3.7 percent. It included a 9.6
percent slide in the shares of Valeant Pharmaceuticals (N:VRX)
International Inc VRX.TO to C$117.00.
The energy group retreated 1.7 percent while the heavyweight
financials group fell 0.5 percent, as domestic data showed signs
of slowing consumer demand and growing inflationary pressures.
Signs of weaker economic growth has joined uncertainty
related to energy loan books and an "overheated housing market,"
adding to investor concerns about bank stocks, according to
Diana Avigdor, head of trading at Barometer Capital Management.
Banks begin to report quarterly earnings next week.
The concern is that each time they don't show deterioration
in performance they are "pushing out the inevitable," said
Avigdor.
Oil prices fell as record high U.S. crude stockpiles
intensified worries that a plan to freeze world output will do
little or nothing to reduce massive supplies already in the
market. O/R
U.S. crude CLc1 prices settled at $29.64 a barrel, down
3.67 percent.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 117.96 points, or 0.91 percent, at
12,813.40. Eight of the index's 10 main groups ended lower.
Still, the index posted a 3.5 percent gain on the
holiday-shortened week.
The market needs the long-term investor to get engaged in
order to take it to the next level, said Avigdor.
The most influential movers on the index also included
Canadian Natural Resources CNQ.TO , which fell 3.5 percent to
C$28.09, and Manulife Financial Corp MFC.TO which lost 2.5
percent to C$17.55.
Pipeline company Enbridge Inc ENB.TO fell 2.1 percent to
C$43.14, despite reporting higher-than-expected
profit.
The materials group, which includes precious and base metals
miners and fertilizer companies, fell 1.7 percent. It included a
6.6 percent drop in the shares of Potash Corporation of
Saskatchewan Inc POT.TO to C$22.06.
Retail sales slumped in December as unseasonably warm
weather in many parts of the country cut into seasonal
purchases.
The annual inflation rate picked up to 2 percent in January,
the highest since November 2014, lifted by food prices and a
rise in gasoline costs.
Consumer discretionary stocks fell 0.7 percent, but staples
rose 0.2 percent.