TSX weighed down by earnings disappointments; Valeant plunge
By Alastair Sharp
TORONTO (Reuters) - A plunge in shares of drugmaker Valeant and sharp retreats in several other companies on the back of disappointing earnings reports pushed Canada's main stock index lower on Thursday.
Valeant Pharmaceutical International Inc (VRX.TO: Quote) slumped 14.7 percent to C$103.37, touching its lowest level since mid-2013, heaping new pressure on its CEO after weeks of steep declines.
Auto maker Magna International Inc (MG.TO: Quote) fell 10.3 percent to C$62.42 after reporting a drop in quarterly sales which the auto parts maker blamed on a strong U.S. dollar.
Magna's valuation has risen steadily in recent years and the sharp loss on a moderately disappointing quarter shows that investors are nervous, said Elvis Picardo, a strategist at Global Securities in Vancouver.
"It's an environment right now where investors are skittish and they're not going to hesitate to take profits on stocks that have moved higher," he said.
Telus, one of the country's biggest telecom companies, lost 4.1 percent to C$41.91 after reporting slower wireless growth and planned job cuts.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 103.04 points, or 0.75 percent, at 13,558.78.
Shares of Ontario electric utility Hydro One Ltd H.TO rose C$1.12 to C$21.57 on its trading debut. Continued...