CANADA STOCKS-TSX gains on Valeant news; financial stocks weigh

Mon Feb 23, 2015 4:55pm EST
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(Adds details on financial sector, energy sector, investor comment)

* TSX ends up 28.02 points, or 0.18 percent, at 15,200.26

* Six of 10 main index sectors gain

* Valeant shoots up 15 percent on news of takeover deal

By John Tilak

TORONTO, Feb 23 (Reuters) - Canada's main stock index edged higher on Monday as weakness in shares of banks and insurers was offset by a surge in Valeant Pharmaceuticals after the drugmaker announced a major acquisition.

Valeant Pharmaceuticals International Inc shares shot up 15.1 percent to C$250.13, a day after the company agreed to acquire gastrointestinal drugmaker Salix Pharmaceuticals Ltd in an all-cash deal valued at about $10.1 billion.

Meanwhile, a drop in oil prices weighed on the energy sector and banking shares were hit by negative investor sentiment ahead of their earnings reporting season.

Worries about the impact of lower oil prices and fears that the Canadian economy is slowing down have contributed to the bearish mood on the banking sector.   Continued...