CANADA STOCKS-TSX falls most in months on broad weakness

Fri Sep 19, 2014 4:59pm EDT

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* TSX ends down 200.19 points, or 1.29 percent, at 15,265.35
    * All 10 main sectors are in the red

 (Adds strategist comment, updates prices to close)
    By Alastair Sharp
    TORONTO, Sept 19 (Reuters) - Canada's main stock index took
its sharpest one-day hit in seven months on Friday as a broad
array of stocks from banks to telecommunications and resource
companies pushed it to a 1.7 percent decline for the week.
    All 10 of the main sectors ended in the red, with
heavyweight financial, energy and materials stocks doing the
most damage. 
    The Toronto Stock Exchange's S&P/TSX composite index
 has hit record highs this year but started to stumble
earlier in September as commodity prices come under pressure.
    "It could definitely be general market fatigue" among
investors, said Kevin Headland, a director in the portfolio
advisory group at Manulife Asset Management. "It could very well
be opportunistic profit-taking."
    The index dropped 200.19 points, or 1.29 percent, to end the
day at 15,265.35. The index recorded a 1.7 percent decline for
the week.
    "A market that starts to sell off can often be
self-fulfilling as it hits other people's stop-loss trades and
continues downward," Headland said.
    Suncor Energy Inc lost 2.5 percent to C$41.99, and
Encana Corp declined 2.5 percent to C$23.79.
    "Energy has been the big drag this week, tied in to the
decline in the price of oil we've seen," said Rick Hutcheon,
president and chief operating officer at RKH Investments.
    "We've come from the low $100s to the low $90s; that's a
pretty big drop. The perception is that the world is well
supplied with oil right now."
    TransCanada Corp bucked the trend, rising 0.9
percent to C$61.38 after saying its current corporate structure,
asset base and financial strength are critical to its growth.
 
    The stock had jumped on Thursday after Reuters reported U.S.
hedge funds were eyeing the pipeline operator as a breakup
candidate. 
    Hutcheon said energy producers would likely rebound, with
gas players such as Encana leading the charge as winter
approaches and refineries switch capacity to heating oil.
    Banks piled on the downward pressure, which RKH's Hutcheon
said could be a reaction to Scotland voting to stay within the
United Kingdom. The sector is often considered more attractive
when investors seek safety.
    Royal Bank of Canada fell 1.6 percent to C$81.80,
Toronto-Dominion Bank gave up 1.7 percent, to C$56.56,
and Bank of Nova Scotia finished down 1.9 percent at
C$71.56.
    Miners also weighed, with Canadian Natural Resources
 down 2.3 percent at C$44.07. First Quantum Minerals Ltd
 fell 4 percent to C$21.61 after it suspended operations
at a mine in Mauritania.

 (Reporting by Alastair Sharp; Editing by W Simon, J Benkoe and
Jonathan Oatis)
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