January 12, 2015 / 4:18 PM / 3 years ago

CANADA STOCKS-TSX drops as energy shares weaken with oil price

* TSX down 149.60 points, or 1.04 percent, at 14,235.32

* Nine of 10 main index sectors decline

* Gold-mining shares climb with bullion price

By John Tilak

TORONTO, Jan 12 (Reuters) - Canada’s main stock index dropped on Monday as oil prices dropped after Goldman Sachs cut its forecast for the commodity, sending down shares of energy companies.

The price of oil, which has been pressured by concerns about excess supply, reached its lowest since early 2009. Energy shares are down 41 percent since June.

The benchmark TSX neared its weakest level in nearly 4 weeks, with nine of the 10 major sectors on the index trading in the red.

“Oil doesn’t seem to be able to find any point where it can stop falling. We really have to see the price of oil consolidate somewhere,” said David Cockfield, managing director and portfolio manager at Northland Wealth Management.

“The TSX is going to continue to flounder until we see some light at the end of the tunnel as far as the oil stocks and oil prices are concerned,” he added.

The Toronto Stock Exchange’s S&P/TSX composite index was down 149.60 points, or 1.04 percent, at 14,235.32.

Shares of energy producers gave back 4.6 percent, with Canadian Natural Resources Ltd shedding 4.8 percent to C$31.58 and Suncor Energy Inc losing 3.8 percent to C$34.25.

Financials, the index’s most heavily weighted sector, fell 1.2 percent. Toronto Dominion Bank declined 1.4 percent to C$51.85, and Bank of Montreal was down 1.5 percent at C$77.08.

The gold-mining sector climbed with the bullion price. Goldcorp Inc advanced 2.9 percent to C$25.35.

In corporate news, Linamar Corp will add up to 1,200 jobs at a facility in Guelph, Ontario, with 10 percent of the new investment paid by the Canadian government, the government said. Shares of the auto-parts maker were little changed. (Editing by Meredith Mazzilli)

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