CANADA STOCKS-TSX drops as energy shares slide with oil
* TSX down 126.34 points, or 0.87 percent, at 14,417.48 * Six of 10 main index sectors decline * Energy shares fall 3.1 percent after oil price slips By John Tilak TORONTO, Oct 27 (Reuters) - Canada's main stock index dropped on Monday as the price of oil tumbled after Goldman Sachs cut its outlook for the commodity, pushing down shares of energy producers. Goldman Sachs slashed its 2015 oil price forecasts and said rising output will outstrip demand. The decline in the price of U.S. crude oil, which has slumped 22 percent in the last three months, has hit energy shares hard. The energy sector has shed about 25 percent since the middle of June, weighing on the broader market. The TSX's decline on Monday follows the benchmark's biggest weekly jump in more than a year. Fund managers said investors should expect more volatility in the coming months. "I was expecting more of a U-shaped recovery, but it looks like it's V-shaped. We'll do a little sideways here," said David Cockfield, portfolio manager at Northland Wealth Management, of the Canadian market's recent choppy moves. He said that while energy shares were looking attractive because of the multiples, he wasn't rushing in to buy until there were signs that prices were stabilizing. The Toronto Stock Exchange's S&P/TSX composite index was down 126.34 points, or 0.87 percent, at 14,417.48. Six of the 10 main sectors on the index were in the red. Shares of energy producers fell 3.1 percent. Canadian Natural Resources Ltd lost 3 percent to C$37.77, and Suncor Energy Inc gave back 2.8 percent to C$37.78. Financials, the index's most heavily weighted sector, declined 0.6 percent. Royal Bank of Canada was down 0.9 percent at C$78.55, and Toronto Dominion Bank dropped 0.6 percent to C$53.96. (Editing by James Dalgleish)
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