CANADA STOCKS-TSX drops on U.S. economic data; down for fifth day

Thu Sep 25, 2014 10:47am EDT
 
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* TSX down 139.75 points, or 0.92 percent, at 14,980.79
    * Nine of the 10 main index sectors decline
    * Valeant shares jump after ValueAct executive to join board

    By John Tilak
    TORONTO, Sept 25 (Reuters) - Canada's main stock index
dropped for a fifth straight session on Thursday, nearing a
three-month low, as sluggish U.S. economic data weighed on
sentiment.
    Market volatility shot up and commodity prices remained
choppy. A decline in the price of bullion sent gold-mining
shares lower, offsetting a gain in Valeant Pharmaceuticals
International Inc. 
    Data showed orders for long-lasting U.S. manufactured goods
in August recorded their biggest drop on record as aircraft
orders fell back after jumping in July. 
    Stock prices in the Toronto equity market have run ahead of
fundamentals, said John Ing, president of Maison Placements
Canada.
    "The action of late has been very volatile. We have been
ripe for a pullback," he added. "The market has been overbought,
has been overvalued. It's long overdue."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 139.75 points, or 0.92 percent, at 14,980.79.
Nine of the 10 main sectors on the index were in the red.
    Financials, the index's most heavily weighted sector,
dropped 1.1 percent. Toronto-Dominion Bank shed 1.6
percent to C$55.52, and Bank of Nova Scotia lost 1.5
percent to C$69.06.
    Shares of energy producers gave back 1.4 percent. Canadian
Natural Resources Ltd declined 1 percent to C$43.68,
and Suncor Energy Inc fell 0.9 percent to C$40.50.
    Valeant said it had named the head of a top shareholder,
ValueAct Capital, to its board of directors and vowed to
continue with its hostile takeover attempt on Botox maker
Allergan Inc. 
    Valeant shares jumped 2.7 percent to C$141.04, helping keep
the healthcare sector in positive territory.
    ($1=$1.11 Canadian)

 (Editing by Peter Galloway)