* TSX falls 47.06 points, or 0.32 percent, to 14,610.96
* Eight of the 10 main index sectors decline
* Valeant drops after raising cash portion of Allergan bid
By John Tilak
TORONTO, May 28 Canada's main stock index
dropped on Wednesday, weighed down by weakness in Valeant
Pharmaceuticals after the drugmaker raised its takeover
offer for Allergan Inc and by a slide in gold-mining
shares as the bullion price fell.
Valeant's stock gave back 2.1 percent after the company
increased the cash component of its unsolicited takeover offer
for Allergan, valuing the U.S. drugmaker at $49.44 billion.
The Toronto stock market's benchmark index, which has
outperformed the S&P 500 so far this year, declined for a
second straight session. Fund managers were saying that it is
getting harder to find value in Canadian stocks.
"The market is drifting," said John Ing, president of Maison
"The markets are still on rarefied ground," he added. "I
think that the market is richly valued."
The Toronto Stock Exchange's S&P/TSX composite index
closed down 47.06 points, or 0.32 percent, at
14,610.96. Eight of the 10 main sectors on the index were in the
Financials, the index's most heavily weighted sector,
declined 0.2 percent, with Royal Bank of Canada falling
0.2 percent to C$75.16.
Bank of Montreal fell 0.2 percent to C$76.62 even
though the lender's quarterly profit rose 12 percent, topping
estimates, as strong capital markets and domestic lending income
more than offset weakness at its U.S. retail bank
Gold-mining shares shed 1.6 percent, with Barrick Gold Corp
dropping 1.2 percent to C$17.04, and Goldcorp Inc
falling 1.6 percent to C$25.16.
Valeant declined to C$138.11 and had the biggest negative
influence on the index.
(Editing by Peter Galloway)