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CANADA STOCKS-TSX slumps as resources weigh, Valeant tumbles

Published 2015-09-28, 04:37 p/m
© Reuters.  CANADA STOCKS-TSX slumps as resources weigh, Valeant tumbles
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(Adds strategist comment, updates prices to close)
* TSX ends down 373.99 points, or 2.8 percent, at 13,004.58
* All 10 of the TSX's main groups fall

By Solarina Ho and Alastair Sharp
TORONTO, Sept 28 (Reuters) - Canada's main stock index
plunged on Monday, with drugmaker Valeant Pharmaceutical
International VRX.TO stunned by U.S. congressional rebuke and
global malaise hurting a range of Canadian resource companies as
commodities prices fell.
Shares of Valeant, a major weight on the index, fell 16.3
percent to C$221.81 after Democratic lawmakers attacked
"massive" price increases for two heart drugs after the company
bought them in February.
While Valeant's fall was by far the biggest reason for the
day's decline, a range of financial and resource-related stocks
- the index's biggest groups - also fell amid unease over the
economic health of China and other big emerging markets.
"People are still blaming global growth, China. But I think
it's now beyond that," said Allan Small, a senior investment
adviser at HollisWealth. "I think it's now just this overall
feeling of negativity in these markets."
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended down 373.99 points, or 2.8 percent, at
13,004.58. All 10 main groups fell, with energy retreating 2.6
percent and the materials group down 4.6 percent.
U.S. crude CLc1 prices were down 2.8 percent to $44.42 a
barrel, while Brent crude LCOc1 lost 2.6 percent to
$47.32. O/R Gold futures GCc1 fell 1.2 percent to $1,133.2 an
ounce GOL/ , and copper prices CMCU3 declined 1.2 percent to
$4,965 a tonne.
Goldcorp Inc G.TO fell 6.6 percent to C$16.60 and Canadian
Natural Resources Ltd CNQ.TO lost 2.8 percent to C$25.47.
Decliners outnumbered advancers by 227 to 13, and the index
posted one new 52-week high and 25 new lows.
Royal Bank of Canada RY.TO fell 1.2 percent to C$71.05 and
Brookfield Asset Management BAMa.TO slipped 2.9 percent to
C$40.55, while the overall financial sector lost 1.3 percent.
Transcanada Corp TRP.TO was another weighty loser, sliding
4.8 percent to C$41.55. The pipeline operator's planned Keystone
KL pipeline has resurfaced as a U.S. election issue.

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