CANADA STOCKS-TSX dips as energy, industrial shares weaken

* TSX down 46.66 points, or 0.32 percent, at 14,743.12
    * Eight of 10 main index sectors decline
    * Mining shares rise with commodity prices

    By John Tilak
    TORONTO, Oct 6 (Reuters) - Canada's main stock index dipped
on Monday as energy and industrial sector shares declined,
extending a drop recorded in the previous week.
    Equity markets have been battered recently, pulled lower by
strength in the U.S. dollar, geopolitical concerns and the U.S.
Federal Reserve's monetary policy. 
    Investors digested comments from New York Fed President
William Dudley, who said he would be "delighted" to raise
interest rates some time next year since it would be a sign of
economic success, but for now a "very accommodative monetary
policy" is still needed. 
    The benchmark TSX, which has dropped in each of the past
five weeks, has been coming down steadily after hitting a record
high last month.
    The Canadian market's valuations are still too expensive,
said John Ing, president of Maison Placements Canada, who
expects the market to sell off further. 
    "The TSX is trading very much on the upper end of the
range," he said. "The market has been on fumes, it's been a
richly valued." 
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 46.66 points, or 0.32 percent, at
14,743.12. Eight of the 10 main sectors on the index were in the
    The energy sector gave back 0.7 percent, despite a gain in
the price of oil. Suncor Energy Inc lost 0.8 percent to
C$39.55, and Canadian Natural Resources Ltd fell 0.4
percent to C$41.36.
    Industrials dropped 1.1 percent. Canadian National Railway
Co slipped 1.8 percent to C$77.72.
    Air Canada jumped 3.9 percent, to C$8.18, after
reaching a tentative agreement with its pilots' union on a new
10-year contract a year and a half ahead of the expiry of the
current contract. 
    The materials sector, which includes mining stocks,
benefited from strength in the prices of commodities such as
gold, silver and copper. First Quantum Minerals Ltd 
advanced 0.9 percent to C$21.03, and Goldcorp Inc jumped
1.1 percent to C$25.76.

 (Editing by Meredith Mazzilli and Andre Grenon)