CANADA STOCKS-Resource shares drag TSX lower; Scotiabank climbs
* TSX falls 14.26 points, or 0.27 percent, to 14,675.43 * Seven of the 10 main index sectors decline * Valeant slips 2.2 percent after Allergan comments By John Tilak TORONTO, May 27 (Reuters) - Canada's main stock index declined on Tuesday as a drop in prices for gold, oil and other commodities was a drag on shares of natural resource producers. Bank of Nova Scotia shares rose after it released strong quarterly results but the increase was not enough to halt the index's retreat. Scotiabank's second-quarter profit rose 14 percent, beating analysts' estimates, as higher income at its domestic banking and global wealth units offset a flat performance in international retail banking. Shares of gold-mining companies gave back 3 percent and energy stocks shed 0.5 percent. The two groups have recorded the biggest gains on the Toronto Stock Exchange this year. "It's reflecting the very strong performance we've had since the beginning of the year," said Gavin Graham, chief strategy officer at Integris Pension Management Corp, who is bullish on the gold and energy sectors over the long term. Graham said the Toronto stock market's benchmark index could record double-digit growth this year, driven by stability in commodity prices and growth in the U.S. and European economies. The S&P/TSX composite index was down 14.26 points, or 0.27 percent, at 14,675.43. Seven of the 10 main sectors on the index were in the red. Among gold producers, Barrick Gold Corp tumbled 3.6 percent to C$17.37, and Goldcorp Inc slipped 3 percent to C$25.84. Shares of energy producers reflected weakness in oil prices. Canadian Natural Resources Ltd lost 1.1 percent to C$44.01, and Suncor Energy Inc declined 0.8 percent to C$41.96. Financials, the index's most heavily weighted sector, added 0.3 percent, with Scotiabank rising 1 percent to C$68.69. In corporate news, Allergan Inc said Valeant Pharmaceuticals International's $47 billion offer overstated the possible savings from the deal in terms of both research and development and in tax structure. Valeant shares gave back 2.2 percent to C$140.49. ($1=$1.09 Canadian) (Editing by Peter Galloway)
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