CANADA STOCKS-China concerns, commodity prices drag TSX lower

Mon Sep 15, 2014 11:04am EDT
 
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* TSX down 53.68 points, or 0.35 percent, at 15,477.90
    * All 10 main index sectors decline
    * First Quantum, Teck dragged down by copper price

    By John Tilak
    TORONTO, Sept 15 (Reuters) - Canada's main stock index
dropped on Monday as worries about the pace of economic growth
in China and weakness in commodity prices weighed on sentiment,
pulling down shares in every major sector.
    Some economists cut their 2014 growth projections for China
after figures released over the weekend indicated that growth in
factory output in the world's second-biggest economy slowed in
August. 
    Investors also awaited commentary from the U.S. Federal
Reserve this week about its plans to raise interest rates and
looked to the outcome of the Scottish referendum on
independence.
    The benchmark TSX extended its decline after slipping the
previous week. The index, however, is up about 14 percent this
year.
    "The market is fully priced. There's enough uncertainty out
there, and now you've got the potential for the Scots to split
off," said David Cockfield, managing director and portfolio
manager at Northland Wealth Management.
    "There's not a lot of incentive to rush out and buy in this
market," he added. "The market is directionless, and if it's bad
news it reacts pretty quickly." 
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 53.68 points, or 0.35 percent, at 15,477.90.
All 10 main sectors on the index were in the red.
    Financials, the index's most heavily weighted sector, gave
back 0.3 percent, with Royal Bank of Canada losing 0.4
percent to C$81.87 and Bank of Nova Scotia declined 0.3
percent to C$72.76.
    The materials sector, which includes mining stocks, shed 0.7
percent, reflecting the impact of lower copper and silver
prices. First Quantum Minerals Ltd dropped 3 percent to
C$23.40, and Teck Resources Ltd fell 1.4 percent to
C$23.38.
    In corporate news, WestJet Airlines Ltd said it
will start charging some economy passengers for their first
checked bag. The stock jumped 6.2 percent to C$32.56, and Air
Canada's shares climbed 6.1 percent to C$9.
 

 (Editing by James Dalgleish)