CANADA STOCKS-TSX sheds 1.5 percent as oil selloff deepens

Wed Dec 10, 2014 10:50am EST
 
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* TSX down 210.88 points, or 1.49 percent, at 13,984.85

* Nine of 10 main index sectors decline

* Yamana jumps after on plans for Brazilian assets

By John Tilak

TORONTO, Dec 10 (Reuters) - Canada's main stock index dropped 1.5 percent on Wednesday, with shares of energy producers sharply lower as oil prices tumbled on a weak outlook for demand in 2015.

Already battered oil prices hit a five-year low after the Organization of the Petroleum Exporting Countries cut its forecast for oil demand.

The heavyweight energy sector, down 42 percent since the middle of June, gave back another 4.5 percent.

The selloff in oil prices has raised questions about the financial health of energy companies and has been a drag on the benchmark TSX, which slid to its lowest in nearly eight weeks.

"Investors are going to be nervous for a while here," said Michael Sprung, president of Sprung Investment Management. "I suspect we're in for a high degree of volatility for period of who knows how long. It could be six months, it could be more."   Continued...