Toronto stock index gains as health-care sector advances, loonie weakens

The numbers on the TSX board are shown in this August, 2011 file photo. (Aaron Vincent Elkaim / THE CANADIAN PRESS)

Toronto's main stock index moved up on the strength of its health-care sector as Valeant Pharmaceuticals International Inc. rose nearly seven per cent.

The Toronto Stock Exchange's S&P/TSX composite index advanced 44.02 points to 15,619.65.

Valeant (TSX:VRX) was the third best performing stock of the index, rising 6.73 per cent or 89 cents to $14.11 for a second straight day of gains.

The day before, the Quebec-based drugmaker's shares jumped 4.51 per cent after it announced it trimmed its hefty debt by an extra US$220 million. Since the first quarter of 2016, Valeant says it has reduced its US$32-billion debt by US$3.6 billion.

On Tuesday, CEO Joseph Papa told shareholders at the company's annual general meeting that the gathering marked the first day of a new era for Valeant. He said he remained committed to cutting the company's remaining debt by US$5 billion by next February.

The growth from the health-care sector was offset by weakness in the financial and energy sectors.

While embattled alternative mortgage lender Home Capital Group Inc. (TSX:HCG) rebounded with a 11.35 per cent or 79 cent jump in shares to $7.75, many other financial institutions -- including some of Canada's biggest banks -- saw their shares slip in worth.

Shares in the energy sector were the worst performing, losing on average 0.42 per cent of their worth, as the June crude contract lost $1.18 to US$47.66 per barrel.

"I think until that OPEC meeting at the end of the month, we're going to see ebb and flow (in oil prices)," said Colum McKinley, a portfolio manager on the Canadian equities team at CIBC Asset Management.

Members of the Organization of the Petroleum Exporting Countries will meet in Vienna on May 25 to decide whether or not they will extend their agreement from last November to curb crude production.

The loonie continued to move in line with the price of oil, said McKinley.

The average value for the Canadian dollar was 72.89 cents US, down 0.32 of a cent from Monday.

In New York, the Dow Jones industrial average rose 36.43 points to 20,949.89, the S&P 500 index advanced 2.84 points to 2,391.17, and the Nasdaq composite index added 3.77 points to a record-high 6,095.37.

Elsewhere in commodities, the June gold contract rose $1.50 to US$1,257.00 an ounce, the June natural gas contract fell two cents to about $3.20 per mmBTU and the July copper contract declined 2.5 cents to roughly US$2.64 a pound.