CANADA STOCKS-Valeant leads decline as TSX hits one-week low
* TSX falls 91.73 points, or 0.63 percent, to 14,566.29 * Nine of the 10 main index sectors decline * Valeant drops 3.6 percent after raising Allergan bid By John Tilak TORONTO, May 28 (Reuters) - Canada's main stock index fell to its lowest in a week on Wednesday, hit by a decline in shares of Valeant Pharmaceuticals International Inc after the drugmaker raised its takeover offer for Allergan Inc. Valeant's stock gave back 3 percent after the company increased the cash component of its unsolicited offer for Allergan Inc, valuing the U.S. drugmaker at $49.44 billion. Also weighing on the market, shares of the heavyweight energy and mining sectors were pulled lower by weaker commodity prices. Those groups have been among the best performers on the TSX this year. But Bank of Montreal climbed after the lender's quarterly profit rose 12 percent, topping estimates, as strong capital markets and domestic lending income more than offset weakness at its U.S. retail bank unit. With the Toronto market having outperformed the S&P 500 so far this year, fund managers are saying that it is getting harder to find value in Canadian stocks. "Individual investors seem to be finding better bargains in the United States," said Allan Small, a senior investment adviser at HollisWealth. "(They) are forced to move outside of Canada for a portion of their investments." He said investors should see if they can handle the risks involved with staying in the Toronto stock market's gold and energy sectors, adding that the prices of oil and bullion could fall further in the near term. The Toronto Stock Exchange's S&P/TSX composite index was down 91.73 points, or 0.63 percent, at 14,566.29. Small said he sees few catalysts for the Toronto market. He added, however, that the Canadian financial sector remained attractive and the recent results from the country's four biggest banks have illustrated their resilience. Nine of the 10 main sectors on the index were in the red on Wednesday. Financials, the index's most heavily weighted sector, declined 0.4 percent, with Royal Bank of Canada falling 0.7 percent to C$74.77. But BMO added 0.4 percent to C$77.10. Shares of energy producers slipped 0.7 percent. Canadian Natural Resources Ltd was down 0.9 percent at C$43.56, and Suncor Energy Inc dropped 0.9 percent to C$41.51. Gold-mining shares shed 1.3 percent, with Barrick Gold Corp dropping 1.7 percent to C$16.95, and Goldcorp Inc falling 1.6 percent to C$25.15. Valeant lost 3.6 percent to C$136 and had the biggest negative influence on the index. ($1=$1.09 Canadian) (Editing by Peter Galloway)
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