CANADA STOCKS-TSX edges lower as energy, bank shares drag

Mon Feb 23, 2015 10:51am EST
 
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* TSX down 17.19 points, or 0.11 percent, at 15,155.05

* Seven of 10 main index sectors decline

* Valeant shoots up 14.6 percent on news of takeover deal

By John Tilak

TORONTO, Feb 23 (Reuters) - Canada's main stock index slipped on Monday as shares of energy companies were pulled lower by weakness in oil prices, offsetting a surge in Valeant Pharmaceuticals International Inc after the drugmaker announced a major acquisition.

Another drag on the market was a drop in shares of Canadian banks ahead of their earnings reporting season. Concerns about the impact of lower oil prices and worries about a slowing Canadian economy have contributed to the negative sentiment.

Valeant shares shot up 14.6 percent, a day after the company agreed to acquire gastrointestinal drugmaker Salix Pharmaceuticals Ltd in an all-cash deal valued at about $10.1 billion.

The benchmark TSX was down for a fourth straight session, though the index is still up more than 3 percent so far this month.

"We're into a resistance zone here," said David Cockfield, managing director and portfolio manager at Northland Wealth Management. "A little sideways moment, maybe even a drift down, is probably justified here."   Continued...