September 24, 2014 / 11:55 AM / 3 years ago

TSX little changed as banks decline; Valeant jumps

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch

TORONTO (Reuters) - Canada’s main stock index was little changed on Wednesday as a decline in the financial sector offset a jump in shares of Valeant Pharmaceuticals International Inc (VRX.TO) after the drugmaker gave a bullish quarterly outlook.

Valeant said it expects to report higher-than-expected third-quarter revenue and stronger adjusted earnings per share, sending its shares up 7 percent to C$137.29.

The Toronto stock market’s benchmark TSX index has fallen about 3.6 percent from the record high of 15,685.13 it reached earlier this month.

“It’s quite likely that the TSX tests support at 15,000. There’s a good chance that it may perhaps trade lower from there,” said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver.

“We’re seeing quite a bit of volatility in commodity prices,” he added. “So it’s quite likely that we go lower from here before we hopefully go on to new highs next year.”

The energy group, one of the worst-hit sectors over the last three months, has been dropping with the oil price as worries about increasing oil supply and sluggish demand have taken a toll.

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed down 5.13 points, or 0.03 percent, at 15,120.54. Six of the 10 main sectors on the index were higher.

Shares of energy producers ended up slightly after a volatile session, with the price of U.S. crude oil rising 1.4 percent. Suncor Energy Inc (SU.TO) dropped 1 percent to C$40.85, but Canadian Natural Resources Ltd (CNQ.TO) added 0.4 percent at C$44.12.

Financials, the index’s most heavily weighted sector, fell 0.5 percent. Bank of Nova Scotia (BNS.TO) lost 1.2 percent to C$70.11, and Toronto-Dominion Bank (TD.TO) declined 0.8 percent to C$56.42.

In corporate news, BlackBerry (BB.TO) gave back 0.8 percent to C$11.61 after the company launched an unconventional new smartphone dubbed the Passport.

Editing by Meredith Mazzilli and Peter Galloway

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