TSX jumps 2 percent at end of dismal quarter

Wed Sep 30, 2015 4:45pm EDT
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index gained more than 2 percent on Wednesday as surprisingly robust domestic growth data boosted sentiment and Valeant Pharmaceuticals International Inc (VRX.TO: Quote) shares rebounded after being battered by charges of price gauging.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE gained 270 points, or 2.07 percent, to end the session at 13,306.96.

The index still fell 4 percent in September and 8.6 percent in the quarter, however, in its worst quarterly performance since 2011.

"It's been a bad quarter, a bad three months, and you're getting a bounce on some of those groups that were badly hurt," said John Ing, president of Maison Placements Canada.

"It's not the beginning of the bottom or anything like that, no," he said. "There's still too much optimism in valuations."

Valeant, regularly a significant index mover, jumped 12.9 percent to C$239.36 after tumbling more than 30 percent over the last 1-1/2 weeks. Drugmakers including Valeant have come under fire in recent days over accusations of overcharging for their products.

Canada's economy grew 0.3 percent in July, the second consecutive month of growth after contracting for the first five months of 2015. Financials, energy, mining and manufacturing were among sectors leading the growth. ECONCA

The figures supported the idea that any recession in the first half of the year was short-lived.   Continued...

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch