CANADA STOCKS-TSX 6-day rally ends as energy, Valeant fall

Wed Apr 6, 2011 4:42pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * TSX ends down 67.88 points, or 0.48 pct, at 14,202.65
 * Seven of 10 main sectors lower
 * Valeant shares fall as Cephalon rejects bid
 * Portugal debt woes weigh on investor sentiment
 (Updates with analyst comment, closing levels)
 By Jeffrey Hodgson
 TORONTO, April 6 (Reuters) - Toronto's main stock index
closed lower on Wednesday, ending six straight sessions of
gains, with energy and other resource issues leading the
decline even as commodity prices largely rose or held steady.
 Market watchers said signs of fresh sovereign debt problems
in Europe were among the factors weighing on sentiment.
Portugal's caretaker government said it had decided to seek
financing from the European Union, becoming the third euro zone
member to seek a financial rescue. [ID:nLDE7350HL]
 Suncor Energy (SU.TO: Quote), down 1.93 percent to C$42.76, was
the most influential decliner, with peers Imperial Oil Ltd
(IMO.TO: Quote) and Canadian Natural Resources (CNQ.TO: Quote) also weighing
on the index.
 Energy stocks fell even though U.S. crude futures ended at
their highest level in 2-1/2 years on Wednesday, boosted by
supply worries due to turmoil in Libya and the Middle East.
 "Oil's been pushed to levels that people are starting to
worry about whether it could start impinging on the economic
recovery ... You've got Portugal back in the news, so we've got
the European debt situation starting to come up," said Rick
Hutcheon, president of RKH Investments.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 67.88 points, or 0.48 percent, at
14,202.65. Seven of the TSX's 10 main groups were lower, with
energy stocks dropping 1.21 percent.
 While oil was stronger. U.S. natural gas futures ended
lower for a fourth straight day, with comfortable supplies and
moderate U.S. weather forecasts driving the front-month
contract below key chart support. [ID:nN06249394]
 Healthcare shares fell 1.9 percent, dragged lower by a 3.34
percent decline by Valeant Pharmaceuticals International
(VRX.TO: Quote). The stock ended at C$50.35, following news that U.S.
drug maker Cephalon Inc CEPH.O had rejected its $5.7 billion
unsolicited takeover bid. [ID:nN05162826]
 ($1=$0.96 Canadian)
 (Editing by Rob Wilson)