The Toronto Stock Exchange's main index closed the week on a down note on Friday as a big drop by Biovail Corp combined with sagging tech and industrial issues. The S&P/TSX composite index closed down 42.89 points, or 0.3 percent, at 14,582.87. It gained 0.6 percent on the week.
Biovail plunged C$5.64, or 21.2 percent, to C$20.95 after it said the US Food and Drug Administration has rejected its new drug application for antidepressant bupropion. The firm was the biggest weighted drag on the index, which has declined only five times, in the past 17 sessions.
Disappointing results from US bellwethers Caterpillar Inc and Google Inc chilled Canadian industrial and technology stocks, heading into second-quarter earnings season. The earnings misses "were a bit of a shock to the system resulting in huge moves in the States and in Canada," said Sal Masionis, a stockbroker at Brant Securities. "The market was overextended so there was a bit of a correction."
Nearly all of the 20 stocks in the industrials sector gave up ground, led by Canadian Pacific Railway, which jumped earlier this week on take-over speculation. CP n and was down C$1.72, or 1.9 percent, at C$86.99. BlackBerry maker Research In Motion led tech stocks lower, slipping C$2.44, or 1 percent, to C$241.90. The tech sector was down 0.9 percent. Base and precious metal prices remained firm, despite a rise in interest rates in resource-hungry China. A rally by gold to 10-week highs helped the TSX gold-mining sub-group to its third straight advance.
Meridian Gold Inc added 22 Canadian cents, or 0.7 percent, to C$31.80 after it urged its shareholders to defer a decision on an unsolicited take-over offer from Yamana Gold Inc until its board makes a recommendation. Yamana skidded 15 Canadian cents, or 1.1 percent, to C$13.25.
Futures prices in oil were mixed while natural gas softened, and the TSX energy sector, which represents nearly 30 percent of the overall index, eased 0.4 percent. EnCana Corp slipped 73 Canadian cents, or 1.1 percent, to C$66.75.
Elsewhere, giant-screen movie theater maker Imax Corp reported a bigger first-quarter loss, but its shares rose 50 Canadian cents, or 10.9 percent, to C$5.09 on news of higher revenues. Market volume was 345 million shares worth C$6.8 billion. Decliners outpaced advancers 909 to 676. The blue chip S&P/TSX 60 index closed 1.48 points lower, or 0.2 percent, at 840.27.