Valeant shares drop 43 per cent, TSX closes lower
The delayed financial results from Canadian pharma firm Valeant proved disappointing Tuesday and dragged the main index of the Toronto Stock Exchange to its second negative close of the week so far.
Valeant shares plunged 50 per cent after the Montreal-based firm said it had “botched a quarter” with a net loss of U$336.4 million in Q4 2015 and earnings of U$2.50 per share, missing expectations of $2.61. It also sounded a gloomy tone for 2016 earnings and admitted it would have to work hard to rebuild trust of shareholders.
Valeant’s Wall Street listing was also hit with shares falling 45 per cent in morning trade. Overall, the main indexes in New York were mixed with the Dow Jones up slightly and the S&P500 and Nasdaq closing lower.
Earlier, Asian markets had closed lower on a weak outlook for Japan’s economy; Shanghai bucked the trend.
Europe also closed with losses with oil prices dropping on lower expectation for an output cap and mining shares also under pressure.
The S&P/TSX Composite Index closed down 77.23 (0.57 per cent)
The Dow Jones closed up 22.40 (0.13 per cent)
Oil is trending lower (Brent $38.98, WTI 36.75 at 5pm)
Gold is trending lower (1233.10 at 5pm)
The loonie is valued at U$0.7484
Fund managers among group aiming for Aussie port takeover
A group of investors is aiming to acquire Australian rail, port and terminal operator Asciano. Two groups were making rival bids for the firm but have agreed to work together on the C$6.5 billion deal. Among them are fund managers Brookfield Asset Management, BC Investment Management Corp., Qatar Investment Corp. and Qube which includes the Canada Pension Fund Investment Board. CBC News reports that various parts of the Australian firm would be owned by the two bidding groups.
CMHC could offload more debt risk to private sector
The Canada Mortgage and Housing Corp. could be about to shift more of the risk from the housing market onto the banks. It could mean lenders having to pay a deductible to the agency for claims on its mortgage insurance. President and CEO Evan Siddall said CMHC has not ruled out the option.