TSX slips as energy stocks pull back, Valeant falls

Thu Oct 15, 2015 4:51pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index slipped on Thursday, as a pullback among energy stocks and a U.S. subpoena for Valeant Pharmaceuticals International Inc (VRX.TO: Quote) (VRX.N: Quote) weighed.

Valeant fell 5.4 percent to C$216.73 after it said it was subpoenaed by U.S. prosecutors on its pricing, drug distribution and patient assistance programs.

The energy group slipped 0.6 percent, with oil falling for a fourth straight day as a U.S. crude buildup supported oversupply concerns.

The most influential decliners included Canadian Natural Resources (CNQ.TO: Quote), which fell 1.2 percent to C$30.65, and Suncor Energy Inc (SU.TO: Quote), down 0.7 percent at C$36.75.

"Canada is underperforming the U.S. today, likely due to a pullback in resources, which have been having a strong month so far in October," said Youssef Zohny, portfolio manager at StennerZohny Investment Partners+ of Richardson GMP Ltd.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 46.36 points, or 0.33 percent, at 13,828.97.

It had risen steadily this month to above 14,000 by late last week, largely driven by renewed buying interest in the beaten-down energy sector.

"We've had a nice relief rally but definitely the risks are to the downside," Zohny said, citing Canada's exposure to a global economy showing signs of slowdown.   Continued...

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