CANADA STOCKS-TSX drops on emerging-market fears, economic data

Fri Jan 31, 2014 11:07am EST

* TSX falls 119.12 points, or 0.87 percent, to 13,616.16
    * All of the 10 main index sectors decline
    * TransCanada steady ahead of Keystone pipeline review
    * CN Rail slips after quarterly report

    By John Tilak
    TORONTO, Jan 31 (Reuters) - Canada's main stock index fell
sharply on Friday as persisting concerns about emerging markets,
coupled with mixed economic data out of Europe and the United
States, fueled declines in every major sector.
    Investors also had an eye on TransCanada Corp,
whose shares were little changed, ahead of a U.S. environmental
review of its proposed Keystone XL oil pipeline that is likely
to say the project will not appreciably increase carbon
emissions. 
    Data from the euro zone showed inflation fell in January,
missing market expectations and coming below the European
Central Bank's target. 
    Separate figures indicated that U.S. consumer spending rose
more than expected in December, but weak income growth suggested
the world's biggest economy could cool off in the first quarter.
 
    Global markets have had a turbulent ride in recent days as
volatility in some emerging market currencies and doubts about
the pace of China's economic growth has hit investor sentiment
hard. Investors also took in a move by the U.S. Federal Reserve
to further scale back its stimulus program.
    The Toronto market looked set to end a volatile week in the
red, capping off a string of steep dives and sharp gains.
    "It shows a lack of faith in markets in general, and it just
tells me that the market is vulnerable," said David Cockfield,
managing director and portfolio manager at Northland Wealth
Management.
    "I'm re-examining my ideas of what's going to happen in our
market," he added. "I'm becoming distinctly more negative on the
market's prospects for the year." 
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 119.12 points, or 0.87 percent, at 13,616.16.
    All of the 10 main sectors on the index were in the red.
    Financials, the index's most heavily weighted sector,
dropped 1.2 percent. Royal Bank of Canada gave back 1.3
percent to C$68.81, and Toronto-Dominion Bank slipped
1.3 percent to C$95.90.
    With a fall in oil prices, energy shares were down 0.8
percent. Suncor Energy Inc dropped 1 percent to C$36.14,
and Talisman Energy Inc fell 1.3 percent to C$11.91.
    Among pipeline companies, TransCanada was trading at
C$47.91, while Enbridge Inc was steady at C$46.55. 
    In corporate news, Canadian National Railway Co 
reported higher quarterly earnings late on Thursday, but the
results were tempered by extreme winter weather in December and
came in slightly below estimates. The stock fell 1.6 percent to
C$58.39.
FILED UNDER:
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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