CANADA STOCKS-TSX hits 2-1/2-week low on oil price slowdown

Tue Jan 6, 2015 10:56am EST
 
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* TSX down 76.37 points, or 0.53 percent, at 14,316.33

* Eight of 10 main index sectors decline

* Gold-mining shares surge 4 percent

By John Tilak

TORONTO, Jan 6 (Reuters) - Canada's main stock index fell to its lowest in 2-1/2 weeks on Tuesday as shares of energy producers dropped after the price of oil tested new lows on concerns about oversupply.

The release of sluggish U.S. economic data, with new orders for factory goods dropping for a fourth straight month in November, contributed further to the bearish mood.

Oil prices touched a 5-1/2-year low, down about 55 percent since June. Shares of energy companies have lost more than a third of their value during this time.

Hit by the energy-sector weakness, the benchmark Canadian index extended its losses after recording its biggest single-day drop in about 20 months on Monday.

"It's pretty bleak. This is a once-in-a-generation selloff in the crude oil price," said Colin Cieszynski, chief market strategist, CMC Markets.   Continued...