TSX Drops 172 Points at Midday As Valeant Drags Healthcare Stocks Lower, Argentina Default Weighs

By MidnightTrader.com Staff,

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The Canadian benchmark index toppled by 172 points at midday or 1%, coming from near a record high of 15,527.30, on worries over EU's adoption of the toughest Russian sanctions yet and Argentina defaulting for the second time in 13 years. Valeant Pharmaceuticals (VRX.TO) was also a significant decliner after cutting its outlook.

Media reports said the European Union, in response to Moscow supporting rebels in Ukraine, has moved to cut arms sales in Russia and financing for certain banks. On the other hand, Argentina has been declared in default by Standard & Poor's for missing interest payments on $13 billion in restructured bonds.

The biggest loser at midday was the healthcare sector, dropping 3.27%, weighed down by Valeant Pharmaceuticals that fell more than 8%. Other significant decliners were mining and energy, down 2.22% and 1.77%, respectively, along with gold and crude oil prices . Financials slipped 0.31%.

Info tech was the only sector in the positive territory, gaining 2.59%, driven by OpenText (OTC.TO) that climbed 15% on better-than-expected revenue.

More than 141 million shares have changed hands so far. Bombardier (BBD-B.TO) was the most actively traded.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Commodities
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