Canada Stocks Fall for Second Day as Valeant, Miners DropGerrit De Vynck
Canadian stocks decreased for a second day as Valeant Pharmaceuticals International Inc. slid and gold prices declined.
Valeant lost 2.1 percent after raising its unsolicited offer for Allergan Inc. to about $49.4 billion. DragonWave Inc. rallied 13 percent after it signed an agreement to supply an Internet service provider in India with hardware. Bellatrix Exploration Ltd. fell 6.5 percent after saying it would sell 25.7 million new shares.
The Standard & Poor’s/TSX Composite Index dropped 47.06 points, or 0.3 percent, to 14,610.96 at 4 p.m. in Toronto. The benchmark index slipped 0.4 percent yesterday, and is fewer than 500 points below an all-time high.
“Gold prices and the materials sector have been pretty weak over the last couple months and a lot of that has to do with some better-than-expected economic data,” said Youssef Zohny, portfolio manager at Stenner Investment Partners of Richardson GMP Ltd. in Vancouver.
Gold futures reached a 15-week low, paring some of the gains won this year. The metal had its best first-quarter showing since 2008 as investors looked for a safe investment among weak economic numbers and the crisis in Ukraine.
“There’s been kind of a spring rebound in some of the economic numbers and that’s been weighing on gold prices,” Zohny said. Richardson GMP manages about C$26 billion ($24 billion).
Pretium Resources Inc. and Fortuna Silver Mines Inc. led losses among materials companies, falling 5 percent each.
Valeant fell 2.1 percent to C$138.11. The drugmaker increased its hostile bid for Allergan and sold rights to some of its skin-care products for about $1.4 billion to Nestle SA.
DragonWave increased 13 percent to C$1.53. The Ottawa-based company said it is selling “several thousand” of its Internet links to the Indian service provider. DragonWave said earlier this month it had opened a service center in Delhi.
Bellatrix lost 6.5 percent to C$9.55 after saying it would sell 25.7 million shares for C$9.75 each. The company said it would use net proceeds from the offering to cut down debt.
National Bank of Canada dropped 2.5 percent to C$46.86 after second-quarter revenue missed analyst estimates. The Montreal-based company said it increased its quarterly dividend to 48 Canadian cents from 46 Canadian cents.
Midway Gold Corp. gained 8.3 percent to C$1.05 after the miner increased its resource estimate at its Gold Rock project in Nevada.