TSX Rally Stalls After 9-Month Peak -- Canadian Commentary

(RTTNews) - Canadian stocks inched lower Tuesday, trimming May's strong gains despite another solid performance from energy and metals producers.

The S&P/TSX Composite Index was down 20.89 points, or 0.15 percent, to 14,065.78. The index touched a 9-month high in the early going.

Energy stocks were up 1.3 percent, while base metal miners rose 1.5 percent.

Gold shares added 3 percent even as bullion prices continued to fall.

Bank of Nova Scotia (BNS.TO) second quarter profit fell 12% from a year earlier due to a restructuring charge. The bank also had to set aside more cash for bad energy loans. Shares lost 0.6 percent.

C. Michael Pearson, the former chief executive of Valeant Pharmaceuticals (VRX.TO) will receive a $9 million severance payment.

Despite leaving the company amid a scandal involving accounting, Pearson will continue working as a consultant through 2017, Valeant said.

Shares slipped 1.3 percent.

Sherritt International (S.TO) reached an agreement with lenders to refinance debt after a plunge in nickel prices. Shares fell 5.6 percent.

In economic news, Canadian GDP grew at a slower than expected annual pace of 2.4 percent in the first quarter.

Economists expected the economy grew 2.9 percent for the quarter.

"The declines in monthly GDP in February and March and the devastating Fort McMurray wildfire will be large drags on Canadian real GDP in the second quarter, but rebuilding activity will compensate for lost growth in the second half of 2016," said Bill Adams, senior international economist at PNC Financial Services Group.