CANADA STOCKS-TSX hits two-week low as U.S. selloff deepens

Fri Apr 11, 2014 4:55pm EDT

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* TSX ends down 50.31 points, or 0.35 percent, at 14,257.69
    * Eight of 10 main index sectors decline
    * Materials slip, reflecting lower commodity prices

    By John Tilak
    TORONTO, April 11 (Reuters) - Canada's main stock index
dropped on Friday to its lowest in two weeks after a prolonged
slump in the U.S. technology and biotechnology sectors weighed
on the appetite for equities and helped pull down shares in most
major groups.
    The anxiety that some share prices might have run ahead of
themselves, combined with uncertainty about the U.S. Federal
Reserve's monetary policy, remained a drag on sentiment.
    Investors digested data on Friday that showed U.S. producer
prices jumping the most in nine months in March on a surge in
the cost of food and services. 
    The Toronto market's benchmark index declined for a second
straight session and ended the week almost 1 percent lower. 
    "There's obviously a correction going on," said Subodh
Kumar, chief investment strategist at Subodh Kumar & Associates.
"There's been a lot of momentum in the market, and (investors
are) now reappraising geopolitical and earnings factors." 
    "The markets are rebalancing themselves, from an excess
focus on central bank policy to earnings delivery by companies,"
he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 50.31 points, or 0.35 percent, at
14,257.69. It is still up about 4.7 percent this year.
    "The market has had a pretty good run here, so a little
sideways movement is not going to hurt," said David Cockfield,
managing director and portfolio manager at Northland Wealth
Management. "I'm waiting for the panic to settle down."
    "I don't see any fundamental cracks in the system," he
added. "The market looks reasonably priced, but it needs a
rest."
    Eight of the 10 main sectors on the index were in the red.
    Financials, the index's most heavily weighted sector, gave
back 0.2 percent. Manulife Financial Corp shed 0.7
percent to C$20.14.
    Industrials slipped 0.8 percent, with Canadian Pacific
Railway Ltd falling 0.5 percent to C$158.
    The materials sector, which includes mining stocks, declined
nearly 1 percent as some commodity prices turned weaker.
Goldcorp Inc was down 1.5 percent at C$26.45, and Barrick
Gold Corp lost 0.4 percent to C$20.45.
    ($1=$1.09 Canadian)

 (Editing by Peter Galloway and Chris Reese)
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