TSX falls amid weak results by Valeant

Mixed earnings results from some of Canada’s biggest companies dominated a quiet trading day Tuesday, as the Toronto Stock Exchange pulled back for a fifth straight session in a row.

The S&P/TSX composite index fell a moderate 64.27 points at 15,399.24, as healthcare stocks led decliners amid a weak earnings release by drugmaker Valeant Pharmaceuticals.

The Quebec-based company warned that revenues and profits will drop more than analysts had anticipated for this year.

Shares in Valeant lost 85 per cent of its value last year after it came under scrutiny for a strategy of acquiring drug companies and imposing dramatic price increases. It also faces a series of shareholder lawsuits and criminal fraud investigations by U.S. authorities.

Valeant (TSX:VRX) shares plunged 13.9 per cent, or $3.05, to $18.89 on Tuesday.

In other corporate news, two of Canada’s largest financial institutions reported better than expected results.

The Bank of Montreal (TSX:BMO) reported net income of $1.49 billion, up 39 per cent from a year ago. Its shares rose 2.24 per cent, or $2.21, to $100.79.

Scotiabank (TSX:BNS) had $2.01 billion of net income during the first quarter, up 10 per cent compared to the same period last year. Its shares declined 2.79 per cent, or $2.21, to $77.04.

Four out of the five major Canadian banks have reported strong results so far this quarter. TD Bank (TSX:TD) is the last of the group and is scheduled to release earnings on Thursday.

The Canadian dollar declined 0.67 of a U.S. cent to 75.30 cents US, the currency’s lowest close since Feb. 7.

April gold gave up $4.90 at US$1,253.90 an ounce.