CANADA STOCKS-Resources drag TSX lower as market anxiety picks up

Thu May 15, 2014 4:57pm EDT

* TSX falls 84.84 points, or 0.58 percent, at 14,588.89
    * Nine of 10 main index sectors decline
    * CI Financial slips after Scotiabank says to explore stake
sale

    By John Tilak
    TORONTO, May 15 (Reuters) - Canada's main stock index
declined on Thursday as resource shares slipped with commodity
prices amid a broader selloff triggered by concerns about
extended valuations and the lack of market catalysts.
    Also weighing was a drop in shares of CI Financial Corp
, a day after Bank of Nova Scotia said it will
explore options to divest itself of some or all of its 37
percent stake in asset manager and redeploy the capital
elsewhere. 
    Some investors said that the recent rally, which has seen
the Toronto market climb more than 7 percent so far in 2014,
could be setting the benchmark up for a pullback.
    The market has benefited this year from strong gains in the
energy and materials sectors, raising concerns that share prices
might be getting extended. The two groups had the biggest
negative influence on the market on Thursday.
    With the first-quarter earnings season largely over,
investors appeared to be searching for catalysts.
    "When you have a bit of a data void, when you don't have
much to look forward to, that's when the market becomes a little
spotty," said Marcus Xu, portfolio manager at MY Capital
Management Corp in Vancouver.
    "It's a bit of a psychology game. People are looking for
excuses to sell," he added. "There is a correction mentality
right now, and this could continue for a bit."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 84.84 points, or 0.58 percent, at
14,588.89. Nine of the 10 main sectors on the index were in the
red.
    Shares of energy producers dropped 0.7 percent, weighed in
part by a decline in the price of U.S. crude oil. Canadian
Natural Resources Ltd lost 1.1 percent to C$43.89, and
Suncor Energy Inc was down 0.4 percent at C$42.86.
    The materials sector, which includes mining stocks, gave
back 1.6 percent. Barrick Gold Corp slipped 3.4 percent
to C$18.30, and Teck Resources Ltd shed 1.5 percent to
C$24.91.
    Financials, the index's most heavily weighted sector, gave
back 0.3 percent, with Manulife Financial Corp falling
1.3 percent to C$20.07.
    CI shares dropped 3.2 percent to C$34.98, but Scotiabank
added 0.8 percent to C$67.53.

 (Editing by Nick Zieminski and Lisa Shumaker)
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