CANADA STOCKS-TSX stumbles on concerns over Portugal

Thu Jul 10, 2014 4:52pm EDT

* TSX down 100.71 points, or 0.66 percent, at 15,114.48
    * All of 10 main index sectors decline
    * Cogeco slips 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 spurred a selloff in equity markets
globally and weighed on every major sector.
    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 a sharp 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.
    "The market was overdue for some kind of a pullback," said
Mario Richard, senior vice-president and investment strategist
at Fiera Capital.
    "Our view is that this is the bull market that will pursue
its ascent, and we're optimistic that eight to 12 months down
the road the markets will be higher than where they are today,"
he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 100.71 points, or 0.66 percent, at 15,114.48.
All of the 10 main sectors on the index were in the red. 
    Shares of energy producers gave back 1.3 percent, with
Suncor Energy Inc losing 1.4 percent to C$44.98 and
Canadian Natural Resources Ltd declining 0.9 percent to
C$48.56. 
    Financials, the index's most heavily weighted sector,
slipped 0.3 percent. Royal Bank of Canada fell 0.2
percent to C$78.34.
    The gold-mining sector declined 1.8 percent, despite a rally
in the bullion price. Goldcorp Inc dropped 1.5 percent to
C$29.74, and Barrick Gold Corp shed 1.9 percent to
C$19.76.
    In corporate news, Cogeco Cable Inc reported a
lower third-quarter profit and cut its full-year profit outlook.
The stock was down 0.7 percent at C$58.75. 

 (Editing by Meredith Mazzilli and Chris Reese)
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