CANADA STOCKS-TSX falls on China data, oil price hits energy shares

Mon Nov 3, 2014 4:47pm EST
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* TSX down 75.70 points, or 0.52 percent, at 14,537.62
    * Five of 10 main index sectors decline
    * Energy shares lead market's fall

    By John Tilak
    TORONTO, Nov 3 (Reuters) - Canada's main stock index dropped
on Monday as weak economic data from China made itself felt and
a lower oil price hit the shares of energy producers.
    Figures showed that growth in the Chinese services sector
slumped to a nine-month low in October, highlighting concerns
about a slowdown in the world's second-biggest economy.
    The U.S. dollar also has been surging since the Bank of
Japan unveiled new stimulus measures late last week and that has
put pressure on commodity prices such as oil and bullion.
    The Toronto stock market's energy sector, which has lost a
quarter of its value since the middle of June, shed 2.4 percent
and had the biggest negative influence on the benchmark index. 
    "We've had another bad day for oil. The U.S. dollar trade is
putting commodities down," said Marcus Xu, portfolio manager and
president at M.Y. Capital Management Corp in Vancouver. "A lot
of people are sitting on the sidelines."
    However, the selloff in energy shares have made them
     "There's a big discount," Xu added. "You can pick and
choose some high-quality names that will be around for a long
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 75.70 points, or 0.52 percent, at
14,537.62. Five of the 10 main sectors on the index were in the
    Among energy shares, Canadian Natural Resources Ltd 
dropped 2.7 percent to C$38.28, and Suncor Energy Inc 
declined 3.6 percent to C$38.57.
    Financials, the index's most heavily weighted sector, were
down 0.2 percent. Bank of Nova Scotia shed 0.4 percent
to C$68.78, and Toronto-Dominion Bank fell 0.1 percent
to C$55.41.

 (Editing by Peter Galloway and Andre Grenon)