Canadian shares tumbled on Friday, pulled down by Valeant Pharmaceuticals, Husky Energy and the heavyweight financial sector.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 1.3% to 13,618.88 at 12:57 p.m. in Toronto.
Two shares declined for every issue that advanced as all of the ten main share groups were in negative territory.
Valeant Pharmaceuticals International (TSE:VRX) tumbled 12% to C$130.65 after the Laval, Quebec-based drugmaker said it will cut all ties with pharmacy business Philidor Rx Services in the wake of criticism over the relationship between the two closely associated companies.
The financials group, which accounts for approximately 36% of the main measure, more than any other group, retreated 1.5%.
Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, decreased 2.4% to $74.65. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, lost 1.1% to $41.42.
The materials sub-index, which includes mining shares, surrendered 0.8% as the price of gold steadied. Goldcorp (TSE:G), Canada’s largest gold miner by market value, fell 1.9% to C$17.00. Gold (TSE:ABX), Canada’s second-largest gold miner, inched up 0.3% to C$10.34.
U.S. gold for December delivery was down $2.30 at $1,145.00.
The energy sector, the main index's second most heavily weighted group, slipped 0.5% as oil, Canada’s largest export, was little changed.
Husky Energy (TSE:HSE) decreased 8% to C$18.64. The nation’s third-largest integrated oil company swung to a loss in the third quarter due to after-tax impairment charges of $3.8-bn related to a gloomier long-term outlook for oil and gas prices.
Imperial Oil Ltd (TSE:IMO) slid 0.7% to C$43.84. The Canadian affiliate of Exxon Mobil said profit in the third quarter sank even after it boosted production as oil stuck near six-year lows.
Suncor Energy (TSE:SU), Canada's biggest energy company, rose 0.1% to C$38.85.
Canadian Natural Resources (TSE:CNQ), the country's largest heavy-oil producer, edged up 0.9% to C$30.59.
U.S. crude was down $0.23 to $45.83, moving between $45.48 and $46.39.
In economic news, Canada’s economy grew for a third month in August, cementing a rebound from an oil shock that had pulled the nation toward recession in the first half of this year. Statistics Canada said on Friday that gross domestic product increased 0.1% to an annualized C$1.66 trillion, following gains of 0.4% and 0.3% in June and July.