CANADA STOCKS-TSX hits 2-1/2-month low as energy shares drop

Wed Sep 24, 2014 11:12am EDT
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* 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
    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)