CANADA STOCKS-TSX drops 1 percent as Scotiabank, energy shares drag

Tue Nov 4, 2014 4:42pm EST
 
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* TSX down 147.19 points, or 1.01 percent, at 14,390.43
    * Five of 10 main index sectors decline
    * Energy shares shed 4.2 percent

    By John Tilak
    TORONTO, Nov 4 (Reuters) - Canada's main stock index
declined on Tuesday as a sharp drop in the price of oil sent
energy shares tumbling and Bank of Nova Scotia slipped
after the company announced job cuts.
    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 because of bets that have soured in the
Caribbean and South America. Its shares fell 2.3 percent to
C$67.19. 
    Oil prices slumped to multiyear lows after major exporter
Saudi Arabia cut sales prices to the United States, dragging
down shares of energy producers. Energy shares fell 4.2 percent
and are down 28 percent since the middle of June.
    "Who knows where the bottom is, but that doesn't mean you
shouldn't be looking at large companies with financial strength,
such as Suncor Energy," said Michael Sprung, president
of Sprung Investment Management.
    Investors should choose "companies that have the balance
sheet to withstand a period where things are likely to remain
unsettled for some time," he added.
    "We're seeing a buying opportunity. It's just that your
investment horizon is going to be stretching out for a few
years."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 147.19 points, or 1.01 percent, at
14,390.43. Five of the 10 main sectors on the index fell.
    Among energy shares, Canadian Natural Resources Ltd 
lost 3.9 percent to C$36.80, and Suncor dropped 3.5 percent to
C$37.24.
    TransCanada Corp was little changed after the
pipeline company posted a stronger-than-expected third-quarter
profit, helped by higher earnings from its Keystone and Mexican
pipelines. 
    Talisman Energy Inc tumbled 11.9 percent to C$6.10
after the company reported quarterly results. 
    Financials, the index's most heavily weighted sector, edged
lower as Scotiabank's decline more than offset a gain in shares
of Royal Bank of Canada, which climbed 0.4 percent to
C$80.32.

 (Editing by James Dalgleish and Steve Orlofsky)