CANADA STOCKS-Energy, gold-mining shares pull TSX lower

Mon Oct 27, 2014 5:01pm EDT
 
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* TSX down 74.82 points, or 0.51 percent, at 14,469
    * Five of 10 main index sectors decline
    * Energy shares fall 2.8 percent after oil price slips

    By John Tilak
    TORONTO, Oct 27 (Reuters) - Canada's main stock index fell
on Monday as weakness in the price of oil weighed on shares of
energy producers and a lower bullion price was a drag on the
gold-mining sector.
    The price of oil tumbled after Goldman Sachs cut 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 21 percent in the last three months, has hit energy
shares hard. The group 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 there could
be more volatility in the coming months.
    Investors are also expecting the Federal Reserve to provide
further clarity about its monetary policy at a meeting this
week. The U.S. central bank is seen assuring the markets that it
is prepared to wait a long time before raising interest rates.
 
    "I don't think the Fed plans to give a major shock. I don't
see them looking for big changes," said Adrian Mastracci,
portfolio manager at KCM Wealth Management.
    "They really want to stay out of the way as much as they
can, but they want to give an impression that if they are needed
they are ready to step back in," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 74.82 points, or 0.51 percent, at 14,469.
Five of the 10 main sectors on the index were in the red.
    Shares of energy producers fell 2.8 percent. Canadian
Natural Resources Ltd lost 2.5 percent to C$37.95, and
Suncor Energy Inc gave back 1.9 percent to C$38.15.
    The gold-mining sector was down 1.5 percent. Barrick Gold
Corp shed 1.5 percent to C$14.96, and Goldcorp Inc
 declined 1.2 percent to C$24.72.

 (Editing by James Dalgleish and Cynthia Osterman)