CANADA STOCKS-TSX slips after telecom, resource shares weaken

Mon Jul 7, 2014 10:46am EDT

* TSX down 75.38 points, or 0.50 percent, at 15,139.58
    * Nine of 10 main index sectors fall
    * Telus, Rogers among top decliners

    By John Tilak
    TORONTO, July 7 (Reuters) - Canada's main stock index fell
on Monday, hurt by a decline in shares of telecoms providers
following news of a new spectrum auction and sluggishness in the
natural resource sectors after commodity prices weakened. 
    The Canadian government said it will auction more prime
wireless spectrum early next year, with more than half the
airwaves set aside for newer players that have struggled to win
business from the country's three dominant telecom companies.
 
    Speculation about an earlier-than-expected rise in U.S.
interest rates also weighed on investor sentiment.
 
    A gain in the U.S. dollar was a drag on the bullion price
and gold-mining shares, while the easing of supply worries in
Iraq helped push down the price of oil.  
    Despite Monday's decline, the Toronto market is up about 11
percent this year after climbing steadily in the past few
months.
    "This market is vulnerable just on the basis that it has had
too long a run without some sort of a shakeout," said David
Cockfield, managing director and portfolio manager at Northland
Wealth Management.
    "The market is fully priced at these levels but not
significantly overpriced," he added. "I'm more inclined to be
selling than buying."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 75.38 points, or 0.50 percent, at 15,139.58.
Nine of the 10 main sectors on the index were in the red.
    Shares of energy producers gave back 0.6 percent, with
Encana Corp shedding 2.1 percent to C$23.89 and
Talisman Energy Inc losing 0.5 percent to C$11.02.
    The gold-mining sector was down 0.5 percent, reflecting
weakness in the price of the commodity. Goldcorp Inc 
slipped 0.5 percent to C$29.19.
    Telecoms shares declined 0.8 percent after the spectrum
auction news. Telus Corp dropped 1.4 percent to C$39.36,
and Rogers Communications Inc was down 1.3 percent to
C$42.45.

 (Editing by James Dalgleish)