TSX tumbles, led by financials, energy and Valeant

Thu Nov 12, 2015 5:00pm EST
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index tumbled to its lowest closing level in six weeks on Thursday, as pressure on commodities and cyclical resource stocks spilled over to other sectors, including deep losses for financials.

"The market wants to go down and this commodity thing is really hurting," said John Kinsey, portfolio manager at Caldwell Securities Ltd, suggesting also that the wave of comments from U.S. Federal Reserve officials has not helped.

He added "it's probably hurting the banks as well because they would have big loans," noting that the oil companies' loan facilities get reviewed once a year, in the fall.

The financials group fell 1.6 percent, while the energy group plunged 2.3 percent as the TSX had its sharpest drop since Oct. 30.

The most influential stock on the index was Valeant Pharmaceuticals International Inc (VRX.TO: Quote), which dropped 6.2 percent to C$98.14.

Valeant's stock has slumped from well above C$300 in September amid sharp scrutiny of its business practices.

Manulife Financial Corp (MFC.TO: Quote) fell 3.7 percent to C$21.60 after Canada’s biggest insurer reported a lower-than-expected quarterly profit on oil and gas investment losses.

Among bank stocks, Royal Bank of Canada (RY.TO: Quote) was most influential, falling 1.3 percent.   Continued...

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