CANADA STOCKS-TSX drops with Scotiabank, energy shares

Tue Nov 4, 2014 10:50am EST
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* TSX down 109.69 points, or 0.73 percent, at 14,427.93
    * Six of 10 main index sectors advance
    * Energy shares shed 3.7 percent

    By John Tilak
    TORONTO, Nov 4 (Reuters) - Canada's main stock index fell on
Tuesday as the energy sector tumbled with oil prices and Bank of
Nova Scotia declined after the lender announced job
    Scotiabank, Canada's No. 3 lender, said it was cutting about
1,500 jobs and booking a pre-tax charge of C$451 million ($396
million), mainly due to bets that have soured in the Caribbean
and South America. The stock dropped 1.2 percent to C$67.97.
    Oil prices tumbled to multiyear lows after major exporter
Saudi Arabia cut sales prices to the United States, dragging
down shares of energy producers. Energy shares fell 3.7 percent
and are down 27 percent since the middle of June.
    "The selloff is overdone. We're well into oversold
territory," said Stan Wong, director of wealth management and
portfolio manager at Scotia McLeod. 
    "I don't think oil prices can fall too much lower," he said.
"The Canadian producers are very well positioned in terms of
their costs and their ability to make profits even at these
    Wong said he has been acquiring energy shares, including
Canadian Natural Resources Ltd and Suncor Energy Inc
, as their valuations have started to look appealing. 
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 109.69 points, or 0.73 percent, at 14,427.93.
Six of the 10 main sectors on the index were higher.
    Among energy shares, Canadian Natural lost 3.3 percent to
C$37.03, and Suncor dropped 3 percent to C$37.40.
    TransCanada Corp was little changed after the
pipeline company posted a better-than-expected third-quarter
profit, helped by higher earnings from its Keystone and Mexican
    Financials, the index's most heavily weighted sector, edged
higher. Royal Bank of Canada climbed 0.7 percent to

 (Editing by James Dalgleish)