CANADA STOCKS-TSX tumbles, dragged by resource shares, Encana

Wed Dec 11, 2013 10:42am EST

* TSX falls 83.03 points, or 0.62 percent, to 13,240.98
    * All 10 main index sectors decline
    * RBC has market's biggest negative influence
    * Encana slips after releasing production outlook

    By John Tilak
    TORONTO, Dec 11 (Reuters) - Canada's main stock index
dropped on Wednesday, as weak commodity prices weighed on shares
of natural resource companies and investors cautiously digested
news of a provisional U.S. budget agreement. 
    The bipartisan budget deal announced in the U.S. Congress on
Tuesday marked the end of three years of gridlock and fiscal
instability in Washington that culminated in October with a
partial government shutdown. 
    Further dragging on the market was a 4.1 percent decline in
shares of Encana Corp after the company released its
2014 production outlook, predicting lower-than-expected output
of high-value natural gas liquids and oil. Falling natural gas
prices contributed to the decline. 
    The Toronto stock market eased after three days of gains,
and every major sector was trading in negative territory.
    "I see nothing but red," said John Ing, president of Maison
Placements Canada.  "The market was running on fumes and has
been overbought." 
    "It is in need of a pullback," said Ing, who didn't expect a
rebound soon in energy and material stocks.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 83.03 points, or 0.62 percent, at 13,240.98.
    The energy group, down 0.7 percent, was hit by a drop in the
price of oil. Canadian Natural Resources Ltd gave back
1 percent to C$34.42.
    The materials sector, which includes mining stocks, was down
0.6 percent.
    Barrick Gold Corp lost 1.6 percent to C$17.63, and
Teck Resources Ltd declined 1.1 percent to C$25.28.
    Shares of banks and insurers gave back 0.6 percent. Royal
Bank of Canada, the country's No. 1 lender, slipped 0.9
percent to C$68.76 as the biggest negative influence on the
market. Manulife Financial Corp shed 0.5 percent to
C$20.03.
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