CANADA STOCKS-TSX hits 2-1/2-month low as energy shares drop
* TSX down 90.40 points, or 0.6 percent, at 15,035.27 * Seven of the 10 main index sectors decline * Valeant jumps on forecast for strong third-quarter results * BlackBerry climbs as it launches new smartphone By John Tilak TORONTO, Sept 24 (Reuters) - Canada's main stock index dropped for a fourth straight session on Wednesday, hitting its lowest level in 2-1/2 months as a fall in oil prices fueled a selloff in shares of energy producers. Energy sector weakness, which has been one of the biggest drags on the market in recent months, offset a jump in shares of Valeant Pharmaceuticals International Inc after the drugmaker said it expects to report higher-than-expected third-quarter revenue and stronger adjusted earnings per share. Valeant was up 4.5 percent at C$134.11. The Toronto stock market's benchmark TSX index is down about 4.2 percent from the record high it reached earlier this month. "The market is looking very vulnerable and it's falling on its own weight," said Douglas Davis, chief executive officer at Davis-Rea. "The market got too heavy at the top, too many new issues, too much flamboyance, too many bulls." "It's been needing a correction for a long time, and we're going to see a correction," he added. Davis said the drag from the energy sector is likely to make the Canadian equity market underperform U.S. markets. The group has been falling with the oil price over the past three months as worries about increasing oil supply and sluggish demand have been taking a toll. The Toronto Stock Exchange's S&P/TSX composite index was down 90.40 points, or 0.6 percent, at 15,035.27. Seven of the 10 main sectors on the index were in the red. Shares of energy producers shed 1.2 percent, with the price of Brent crude oil falling 0.9 percent. Suncor Energy Inc dropped 1.4 percent to C$40.68, and Canadian Natural Resources Ltd was down 1.7 percent at C$43.20. Financials, the index's most heavily weighted sector, fell 0.8 percent. Bank of Nova Scotia lost 1.4 percent to C$70, and Toronto-Dominion Bank declined 0.9 percent to C$56.38. In corporate news, BlackBerry gained 1.4 percent to C$11.86 as the company launched an unconventional new smartphone dubbed the Passport on Wednesday. ($1=$1.11 Canadian) (Editing by Peter Galloway)
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