CANADA STOCKS-TSX slumps as resources weigh, Valeant tumbles

Mon Sep 28, 2015 4:37pm EDT
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(Adds strategist comment, updates prices to close)

* TSX ends down 373.99 points, or 2.8 percent, at 13,004.58

* All 10 of the TSX's main groups fall

By Solarina Ho and Alastair Sharp

TORONTO, Sept 28 (Reuters) - Canada's main stock index plunged on Monday, with drugmaker Valeant Pharmaceutical International stunned by U.S. congressional rebuke and global malaise hurting a range of Canadian resource companies as commodities prices fell.

Shares of Valeant, a major weight on the index, fell 16.3 percent to C$221.81 after Democratic lawmakers attacked "massive" price increases for two heart drugs after the company bought them in February.

While Valeant's fall was by far the biggest reason for the day's decline, a range of financial and resource-related stocks - the index's biggest groups - also fell amid unease over the economic health of China and other big emerging markets.

"People are still blaming global growth, China. But I think it's now beyond that," said Allan Small, a senior investment adviser at HollisWealth. "I think it's now just this overall feeling of negativity in these markets."

The Toronto Stock Exchange's S&P/TSX composite index ended down 373.99 points, or 2.8 percent, at 13,004.58. All 10 main groups fell, with energy retreating 2.6 percent and the materials group down 4.6 percent.   Continued...