CANADA STOCKS-Commodity slip, China concerns weigh on TSX

Mon Sep 15, 2014 4:42pm EDT
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* TSX ends down 49.02 points, or 0.32 percent, at 15,482.56
    * All 10 main index sectors decline
    * First Quantum, Teck dragged down by copper price

 (Adds strategist comment, updates prices to close)
    By Alastair Sharp
    TORONTO, Sept 15 (Reuters) - Canada's main stock index fell
on Monday as weakness in commodity prices and worries about the
pace of growth in China's economy 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
    The pessimism about China, the world's biggest metals
consumer, weighed on base metal prices and crude and in turn
hurt the resource-focused Canadian index.  
    "We are so dependent on oil, so that hasn't been helping.
Oil is really more important than anything else at this time,"
said Douglas Davis, chief executive officer at Davis-Rea.
    Brent crude hit a 26-month low while U.S. crude
 bounced off a 16-month low from last week as fears about
tepid demand persisted.
    "Even though there are threats in the Islamic world and
Russia and so on, they're not enough to disturb the oil market,"
Davis said.
    The Toronto Stock Exchange's S&P/TSX composite index
 extended last week's slip, ended the day down 49.02
points, or 0.32 percent, at 15,482.56. All 10 main sectors on
the index were in the red.
    The index, however, is still up about 14 percent this year.
    Shares in WestJet Airlines Ltd bucked the trend,
jumping 6.2 percent to C$32.58 after the company said it will
start charging some economy passengers for their first checked
bag. Air Canada's stock also jumped, up 6.7 percent to
    Financials, the index's most heavily weighted sector, gave
back 0.2 percent, with Royal Bank of Canada losing 0.3
percent to C$81.88 and Manulife Financial Corp down 0.9
percent to C$22.04.
    The materials sector, which includes mining stocks, shed 0.5
percent. First Quantum Minerals Ltd dropped 4 percent to
C$23.16, and Teck Resources Ltd fell 1.5 percent to
    "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, referring to a Scottish
independence vote on Thursday.
    "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."
    Investors are also awaiting commentary from the Federal
Reserve this week about its plans to raise U.S. interest rates.

 (Additional reporting by John Tilak; Editing by James