Advertisement
Canada markets closed

  • S&P/TSX

    21,873.72
    -138.00 (-0.63%)
     

  • S&P 500

    5,071.63
    +1.08 (+0.02%)
     

  • DOW

    38,460.92
    -42.77 (-0.11%)
     

  • CAD/USD

    0.7297
    -0.0024 (-0.32%)
     

  • CRUDE OIL

    82.83
    +0.02 (+0.02%)
     

  • Bitcoin CAD

    87,922.93
    -3,138.12 (-3.45%)
     

  • CMC Crypto 200

    1,390.37
    -33.73 (-2.37%)
     

  • GOLD FUTURES

    2,329.90
    -8.50 (-0.36%)
     

  • RUSSELL 2000

    1,995.43
    -7.22 (-0.36%)
     

  • 10-Yr Bond

    4.6520
    +0.0540 (+1.17%)
     

  • NASDAQ futures

    17,473.75
    -190.75 (-1.08%)
     

  • VOLATILITY

    15.97
    +0.28 (+1.78%)
     

  • FTSE

    8,040.38
    -4.43 (-0.06%)
     

  • NIKKEI 225

    38,460.08
    +907.92 (+2.42%)
     

  • CAD/EUR

    0.6819
    -0.0017 (-0.25%)
     

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

Reuters

By Fergal Smith

TORONTO (Reuters) - Canada's main stock index fell on Tuesday as Valeant Pharmaceuticals International Inc (Toronto:VRX.TO - News) tanked, overshadowing gains for gold miners and financials ahead of a Federal Reserve interest rate decision on Wednesday.

The shares of Valeant (Toronto:VRX.TO - News) 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."

ADVERTISEMENT

Industrial stocks also dragged, including a nearly 3 percent drop in the shares of Canadian Pacific Railway Ltd (Toronto:CP.TO - News) 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 (Toronto:ABX.TO - News) rose 4.6 percent to C$18.98 despite gold falling to its lowest in almost two weeks. [GOL/]

And the energy group closed slightly higher despite oil prices 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 (Toronto:SU.TO - News) rose 2.8 percent to C$35.76. In contrast, Canadian Natural Resources Ltd (Toronto:CNQ.TO - News) fell 1.9 percent to C$35.42.

U.S. crude 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.

(Reporting by Fergal Smith; Editing by W Simon and James Dalgleish)