* TSX falls 57.67 points, or 0.39 percent, to 14,658.02
* Five of 10 main index sectors decline
* Valeant slips 1.9 percent after Allergan comments
By John Tilak
TORONTO, May 27 Canada's main stock index
dropped on Tuesday after weakness in the prices for gold, oil
and other commodities weighed on shares of natural resource
The decline came after advances in the last five sessions.
The Toronto market is up 7.6 percent this year and almost
touched a multi-year high on Monday.
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 almost 4 percent
and energy stocks shed 0.8 percent. The two groups are among the
strongest performers on the Toronto Stock Exchange this year.
"It's just a matter of position adjustment or profit taking
going on in those two sectors," said Elvis Picardo, strategist
at Global Securities in Vancouver, who is positive on the
prospects for the Canadian benchmark index this year.
"As long as earnings growth remains in place and the global
economy continues to chug along, it does seem like the
fundamentals are in place for the TSX to attempt new highs," he
The Toronto Stock Exchange's S&P/TSX composite index
closed down 57.67 points, or 0.39 percent, at
14,658.02. Five of the 10 main sectors on the index were in the
Among gold producers, Barrick Gold Corp tumbled 4
percent to C$17.30, and Goldcorp Inc slipped 4 percent to
Shares of energy producers reflected weakness in oil prices.
Canadian Natural Resources Ltd lost 1.3 percent to
C$43.94, and Suncor Energy Inc declined 1 percent to
Financials, the index's most heavily weighted sector, added
0.4 percent, with Scotiabank rising 1.1 percent to C$68.77.
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 1.9 percent to C$141.04.
(Editing by Peter Galloway and James Dalgleish)