CANADA STOCKS-Resource shares drag TSX lower; Scotiabank climbs

Tue May 27, 2014 11:04am EDT

* TSX falls 14.26 points, or 0.27 percent, to 14,675.43
    * Seven of the 10 main index sectors decline
    * Valeant slips 2.2 percent after Allergan comments

    By John Tilak
    TORONTO, May 27 (Reuters) - Canada's main stock index
declined on Tuesday as a drop in prices for gold, oil and other
commodities was a drag on shares of natural resource producers. 
    Bank of Nova Scotia shares rose after it released
strong quarterly results but the increase was not enough to halt
the index's retreat.
    Scotiabank's second-quarter profit rose 14 percent, beating
analysts' estimates, as higher income at its domestic banking
and global wealth units offset a flat performance in
international retail banking. 
    Shares of gold-mining companies gave back 3 percent and
energy stocks shed 0.5 percent. The two groups have recorded the
biggest gains on the Toronto Stock Exchange this year.
    "It's reflecting the very strong performance we've had since
the beginning of the year," said Gavin Graham, chief strategy
officer at Integris Pension Management Corp, who is bullish on
the gold and energy sectors over the long term.
    Graham said the Toronto stock market's benchmark index could
record double-digit growth this year, driven by stability in
commodity prices and growth in the U.S. and European economies.
    The S&P/TSX composite index was down 14.26 points,
or 0.27 percent, at 14,675.43. Seven of the 10 main sectors on
the index were in the red.
    Among gold producers, Barrick Gold Corp tumbled 3.6
percent to C$17.37, and Goldcorp Inc slipped 3 percent to
C$25.84.
    Shares of energy producers reflected weakness in oil prices.
Canadian Natural Resources Ltd lost 1.1 percent to
C$44.01, and Suncor Energy Inc declined 0.8 percent to
C$41.96.
    Financials, the index's most heavily weighted sector, added
0.3 percent, with Scotiabank rising 1 percent to C$68.69.
    In corporate news, Allergan Inc said Valeant
Pharmaceuticals International's $47 billion offer
overstated the possible savings from the deal in terms of both
research and development and in tax structure. Valeant shares
gave back 2.2 percent to C$140.49. 
    ($1=$1.09 Canadian)

 (Editing by Peter Galloway)
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