CANADA STOCKS-TSX drops as investors flee energy producers, miners

Fri Jan 24, 2014 11:01am EST
 
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* TSX falls 141.09 points, or 1.01 percent, to 13,791.88
    * Eight of the 10 main index sectors decline
    * RBC has biggest negative influence on market

    By John Tilak
    TORONTO, Jan 24 (Reuters) - Canada's main stock index
recorded its biggest single-day drop in more than six weeks on
Friday as expectations that the U.S. Federal Reserve will scale
back its stimulus program heightened and weighed heavily on
emerging-market assets.
    The fears about the Fed, combined with soft economic data
from China, pushed down the prices of some commodities,
including oil and copper. In turn, the resource-sensitive
Toronto Stock Exchange benchmark index fell for a second
straight session and looked set to end the week lower. It also
hit a one-week low.
    "It's clearly not positive for Canada because some emerging
markets account for a lot of the commodity purchases," said
Lorne Steinberg, president of Lorne Steinberg Wealth Management.
    "One senses the air coming out of the balloon as investors
focus on risk," he added. "Sentiment can turn quickly, and that
alone can have a self-fulfilling prophecy when it comes to
markets."
    The benchmark S&P/TSX composite index was down
141.09 points, or 1.01 percent, at 13,791.88. Eight of the 10
main sectors on the index were in the red.
    Financials, the index's most heavily weighted sector, gave
back 1.2 percent. Royal Bank of Canada shed 1.4 percent
to C$70.41 and had the biggest negative influence on the market.
Bank of Nova Scotia lost 1.1 percent to C$63.53.
    Shares of energy producers dropped 1.2 percent, with Suncor
Energy Inc slipping 1.1 percent to C$37.38.
    The materials sector, which includes mining stocks, fell 1.2
percent. Potash Corp was down 2.5 percent at C$35.64,
and Teck Resources Ltd stumbled 2.4 percent to
C$26.49.