* TSX down 82.88 points, or 0.53 percent, to 15,569.2
* Seven of the TSX's 10 main groups fell
By Solarina Ho
TORONTO, May 9 Canada's main stock index fell on
Tuesday as banks, oil and gas companies pulled the market lower,
but losses were modestly tempered by Valeant Pharmaceuticals
International and Home Capital Group Inc
stocks, which soared as investors cheered news from the
The Toronto Stock Exchange's S&P/TSX composite index
fell 82.88 points, or 0.53 percent, to 15,569.2. Seven
of the 10 most influential index movers were in negative
Home Capital Group, which was accused by the Ontario
securities regulator for making misleading statements to
investors, saw its shares surge after it said an unnamed buyer
intended to purchase up to C$1.5 billion ($1.09 billion) worth
of its mortgages.
The overall financials group fell 0.9 percent, however.
Thirteen of the 15 biggest drags on the index were financial
and energy companies, and accounted for the bulk of declines.
Royal Bank of Canada was by far the most influential
driver on the downside, falling 1.3 percent to close at C$92.94.
Bank of Nova Scotia followed, with a 1.1 percent
decline to end at C$75.91.
Michael Simpson, senior portfolio manager at Sentry Select
Capital Corp said bank weakness could be attributed in part to
concerns about weaker oil prices on the economy, but also to
Home Capital related concerns.
"More short-term investors are concerned about the quality
of the books of the Canadian banks, consumer debt showing no
sign of abating, and Canadian real estate price in Toronto being
quite robust," Simpson said. "Some would wisely ask, how long
can this keep going?"
The energy group retreated 1.1 percent, mirroring declines
in U.S. crude prices, which were down 0.6 percent at
$46.17 a barrel.
"Today's losses is a continuation of weakness we've seen
throughout the year in energy," Simpson said.
"The judgment by the market is that there's too much oil, so
this will cause a headwind for companies that are producing."
Canadian Natural Resources Ltd fell 1.6 percent to
Healthcare was among the few gainers, rising 5.5 percent.
Valeant skyrocketed 24.1 percent to C$16.58 after it raised its
earnings outlook and reported its first quarterly profit in six
Software company Open Text Corp retreated after
its quarterly profit missed expectations. Shares slid 5.3
percent to end at C$45.13.
Declining issues outnumbered advancing ones on the TSX by
160 to 85, for a 1.88-to-1 ratio on the downside.
The index was posting 13 new 52-week highs.
($1 = 1.3717 Canadian dollars)
(Reporting by Solarina Ho; Editing by David Gregorio)