Canada Stocks Rise, Halt 3-Day Slide as Banks Gain Offset GoldEric Lam
Raw-materials producers slip as gold touched a one-month low
Valeant drops second day as impairments may be issue: Analyst
Canadian stocks rose, reversing a loss to halt a three-day slide, as gains among banks and insurers offset a drop in resource producers and health-care stocks in a light day of trading following the holiday weekend.
The Standard & Poor’s/TSX Composite Index rose 0.2 percent to 13,390.19 at 4 p.m. in Toronto, erasing a drop in the final hour of trading. The Canadian benchmark equity gauge is up 2.9 percent this year and remains one of the best-performing developed markets in the world.
The modest gain Tuesday halts the longest stretch of losses for the S&P/TSX since Feb. 11, stalling a rebound that followed a turbulent start to the year. The gauge now trades at 21.3 times earnings, about 16 percent more expensive than the valuation of the U.S. equity benchmark, the Standard & Poor’s 500 Index, data compiled by Bloomberg show.
Financial services stocks gained 0.7 percent, while raw-materials producers slipped 0.4 percent, among the most in the S&P/TSX, which saw trading volume 51 percent lower than the 30-day average. Energy stocks lost 0.1 percent as a group. North American markets have re-opened Monday following a holiday on Friday.
Valeant Pharmaceuticals International Inc. tumbled 7.6 percent for a second day of losses. The embattled drugmaker’s annual 10-K filing may be delayed due to asset impairments including recent acquisitions that haven’t fared well, Rodman & Renshaw analyst Ram Selvaraju wrote in a note. Briefly the largest company in Canada by market capitalization last year, Valeant has lost almost 90 percent of its value from an August peak.