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CANADA STOCKS-TSX adds to record highs as Valeant shares surge

Published 2017-11-07, 05:43 p/m
© Reuters.  CANADA STOCKS-TSX adds to record highs as Valeant shares surge

(Adds portfolio manager comments and details throughout; updates prices)

* TSX ends up 39.59 points, or 0.25 percent, at 16,131.79

* Six of TSX's 10 main industry groups end higher

* Valeant rallies 17.2 percent

By Fergal Smith

TORONTO, Nov 7 (Reuters) - Canada's main stock index added to its record highs on Tuesday, boosted by a jump in the shares of Valeant Pharmaceuticals International Inc (NYSE:VRX) VRX.TO after the company's earnings beat estimates, while some energy shares also climbed.

Valeant soared 17.2 percent to C$18.09 after it reported a forecast-beating quarterly profit on the strength of its Bausch and Lomb eye-care business. Healthcare stocks leaped nearly 4 percent. most influential movers on the index also included some oil stocks, with Suncor Energy SU.TO advancing 1.6 percent to C$46.08 and TransCanada Corp TRP.TO gaining 1.4 percent to C$62.60.

Still, the overall energy index dipped 0.1 percent as oil prices CLc1 LCOc1 settled lower after rising to the highest since July 2015 the previous day. Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 39.59 points, or 0.25 percent, at 16,131.79, a record-high close.

The index has soared nearly 8 percent since September, helped by stronger corporate earnings and optimism about the outlook for the global economy.

"I think the cyclical aspect still has some legs to run," said Noman Ali, senior portfolio manager on the Canadian growth team at Manulife Asset Management.

"If we do get any kind of tax reform in the U.S. that's generally positive for the U.S. and the global economy. There is still room for upside."

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The financial services sector, which accounts for about a third of the index's weight, gained 0.1 percent, while telecoms added 0.7 percent.

Six of the index's 10 main groups ended higher.

Industrials rose 0.2 percent, with Finning International Inc FTT.TO advancing 1.4 percent to C$31.96 after it reported third-quarter results that surpassed expectations. Resources Inc THO.TO tumbled 7.8 percent to C$5.67 after the company reported a quarterly loss, with some investors remaining concerned about the uncertainty around its growth plans and its Escobal mine. Gold Resources Inc TXG.TO slumped 18.9 percent to C$14.15 after staff at a mine which is producing gold for the company in Mexico were evacuated after suffering threats. materials group, which includes precious and base metals miners and fertilizer companies, added 0.2 percent.

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