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TSX plunges as Valeant, Husky tumble

Toronto’s main stock index fell by triple digits on Friday, weighed down by the problems of Valeant Pharmaceuticals and the oil sector.

Oil earnings add to dismal news for Toronto stocks

The TSX has suffered a steep decline Friday as Valeant and Husky stocks slide. (Mark Blinch/Reuters)

Toronto's main stock index fell by triple digits on Friday, weighed down by the problems of Valeant Pharmaceuticals and the oil sector.

Valeant stock had fallen 17 per cent by the close of trading, helping to drag the TSX lower because of its heavy weighting in the index.

Valeant said today it would cut ties with Philidor Rx Services, after two health management organizations said they would no longer do business with the pharmacy. The Quebec-based company faces questions about the transparency of its accounting measures.

The TSX declined by 253 points or 1.9 per cent to 13,538.

A report on Canada's economy that showed GDP growth of 0.1 per cent in August should have given Toronto stocks a boost.

But both the energy and financial sectors were lower in Friday trading.

In Canada, earnings season has brought a string of bad news from the oilpatch.

Today Husky Energy announced more jobs cuts and a $101-million loss. Husky stock fell 9.6 per cent in heavy trading.

The Canadian dollar is up two-thirds of a cent at 76.50 cents US.

And oil held above $45, with West Texas Intermediate crude up 33 cents at $46.39 US a barrel.

While U.S. indexes have had their best month of the year, rebounding from the steep slide they took in August, the TSX has made only modest gains.

It is up 2.3 per cent as the trading month of October comes to a close, but down 7.4 per cent on the year.

By contrast, the S&P index is up 6.5 per cent on the month and one per cent on the year, while the Dow has risen 7.2 per cent in October and is just short of its level at the beginning of January.