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CANADA STOCKS-TSX falls as Valeant plunge offsets gains for gold miners, financials

Published 2016-03-15, 05:15 p/m
© Reuters.  CANADA STOCKS-TSX falls as Valeant plunge offsets gains for gold miners, financials
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(Adds analyst quotes, details on industrials, Barrick Gold,
Suncor Energy ; updates prices)
* TSX ended down 77.23 points, or 0.57 percent, at 13,400.31
* Five of the TSX's 10 main groups ended lower

By Fergal Smith
TORONTO, March 15 (Reuters) - Canada's main stock index fell
on Tuesday as Valeant Pharmaceuticals International Inc (NYSE:VRX) VRX.TO
tanked, overshadowing gains for gold miners and financials ahead
of a Federal Reserve interest rate decision on Wednesday.
The shares of Valeant VRX.TO plunged 51 percent to C$45.14
after the drugmaker cut its 2016 revenue forecast by about 12
percent and said a delay in filing its annual report could pose
a debt default risk.
"Valeant has got everyone's attention," said Paul Hand,
managing director at RBC Capital Markets. "It's really quite
stunning."
Industrial stocks also dragged, including a nearly 3 percent
drop in the shares of Canadian Pacific Railway Ltd CP.TO to
C$169.88.
However, excluding Valeant, the index would have risen 0.3
percent in quiet trading ahead of the Fed decision.
The materials group, which includes precious and base metals
miners and fertilizer companies, advanced nearly 1 percent.
Barrick Gold Corp ABX.TO rose 4.6 percent to C$18.98
despite gold XAU= falling to its lowest in almost two weeks.
GOL/
And the energy group closed slightly higher despite oil
prices CLc1 LCOc1 falling for a second straight day.
"The stocks are acting better than the commodities, which
tells you there is a lot of optimism," said Hand.
"People think that the commodity rally at some point here
has legs to the upside again," he added.
Suncor Energy Inc SU.TO rose 2.8 percent to C$35.76. In
contrast, Canadian Natural Resources Ltd CNQ.TO fell 1.9
percent to C$35.42.
U.S. crude CLc1 prices settled at $36.34 a barrel, down
2.26 percent.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 77.23 points, or 0.57 percent, at
13,400.31. On Friday, the index posted a three-month high at
13,543.29.
Five of the index's 10 main groups ended lower.
The financials group rose 0.3 percent, while consumer
staples was up 0.7 percent.

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