CANADA STOCKS-TSX dives as Ottawa shootings, energy drop hit sentiment

Wed Oct 22, 2014 4:48pm EDT

* TSX down 235.64 points, or 1.62 percent, at 14,312.07
    * All 10 main index sectors decline
    * Energy shares slide with price of oil

    By John Tilak
    TORONTO, Oct 22 (Reuters) - Canada's main stock index fell
hard on Wednesday after a four-day winning streak, hit by news
of deadly shootings in Ottawa and a sharp selloff in energy
shares after oil prices tumbled.
    Investors also digested monetary policy commentary from the
Bank of Canada. The Canadian central bank dropped any reference
to taking a neutral stance on interest rates, having already
signaled it would generally not give forward guidance on rate
moves. 
    Canada's capital was jolted by the fatal shooting of a
soldier and an attack on the parliament building in which
gunshots were fired outside a room where Prime Minister Stephen
Harper was speaking. The gunman in the parliament building was
shot dead, and Harper was safely removed. 
    "Investors hate uncertainty, and this introduces an element
of uncertainty that was not seen before," said Elvis Picardo,
strategist at Global Securities in Vancouver. "Investors may be
on tenterhooks over the next little while, wondering if there is
more to come." 
    He added that the fallout in the market would be limited if
this turned out to be a one-off event.
    The benchmark index had rebounded in the previous four
sessions after hitting an eight-month low last week. 
    "I think today's market decline is a normal market
consolidation after a significant bounce off a bottom," said
David Cockfield, managing director and portfolio manager at
Northland Wealth Management. "The events in Ottawa could also be
having an impact on market psychology."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 235.64 points, or 1.62 percent, at
14,312.07. All of the 10 main sectors on the index were in the
red.
    Financials, the index's most heavily weighted sector, fell
1.1 percent. Royal Bank of Canada lost 0.8 percent to
C$79.46, and Bank of Nova Scotia dropped 1.7 percent to
C$66.77.
    Shares of energy producers shed 3.3 percent, reflecting a
2.6 percent drop in the price of U.S. crude oil. Suncor
Energy Inc gave back 2.5 percent to C$37.90, and
Talisman Energy Inc was down 4.4 percent at C$7.38.

 (Editing by James Dalgleish)
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