CANADA STOCKS-Concerns over Portugal pull TSX lower

Thu Jul 10, 2014 10:33am EDT

* TSX down 110.03 points, or 0.72 percent, at 15,105.16
    * Nine of 10 main index sectors decline
    * Cogeco falls after reporting results

    By John Tilak
    TORONTO, July 10 (Reuters) - Canada's main stock index
dropped on Thursday as worries about the financial woes of a
major Portuguese bank rippled across global equity markets.
    Investors were fearful of a contagion effect after shares in
Banco Espirito Santo (BES), Portugal's largest listed bank by
assets, plunged more than 15 percent on growing concerns that
financial troubles at holding companies of the bank's founding
family will have an impact on BES. 
    Shares of energy producers, which have been among the most
influential gainers this year, showed the sharpest decline on
the Canadian benchmark index.
    The Toronto market slipped on Monday and Tuesday on concerns
about whether corporate earnings will be able to match
expectations, but it rebounded a little in the previous session.
    "There seems to be a little bit of panic," said David
Cockfield, managing director and portfolio manager at Northland
Wealth Management.
    "People are reaching for reasons, and the reasons are that
you still have some nervous investors around and the markets
have had a good run and no corrections," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 110.03 points, or 0.72 percent, at 15,105.16.
Nine of the 10 main sectors on the index were in the red. 
    Shares of energy producers gave back 1.4 percent, with
Suncor Energy Inc losing 1.6 percent to C$44.91 and
Canadian Natural Resources Ltd declining 1.7 percent to
C$48.16. 
    Financials, the index's most heavily weighted sector,
slipped 0.6 percent. Royal Bank of Canada shed 0.5
percent to C$78.13.
    The gold-mining sector jumped 2.1 percent, buoyed by a rally
in the bullion price. Goldcorp Inc shot up 2.6 percent to
C$30.98, and Barrick Gold Corp advanced 2.3 percent to
C$20.60.
    In corporate news, Cogeco Cable Inc reported a
lower third-quarter profit and cut its full-year profit outlook.
The stock was down 1.8 percent at C$58.13. 

 (Editing by Meredith Mazzilli)
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