CANADA STOCKS-TSX hits two-week low as China, Fed fears deepen

Mon Jan 27, 2014 11:04am EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX falls 109.31 points, or 0.80 percent, to 13,608.45
    * Seven of 10 main index sectors decline
    * Scotiabank has biggest negative influence on market
    * BMO slips after making offer to buy UK fund manager

    By John Tilak
    TORONTO, Jan 27 (Reuters) - Canada's main stock index
declined on Monday to its lowest level in two weeks, dragged
down by concerns about economic growth in China and fears about
a further scaling back of the U.S. Federal Reserve's stimulus
measures this week.
    Investors have been worried about recent data out of China
that showed signs of weakness in the world's second-biggest
economy and weighed on global equities.
    The market's focus also remained on the Fed ahead of a
policy meeting to determine next steps for its bond-buying
program.
    A slump in the Turkish lira and declines in other
emerging-market currencies and equities that began last week
spread to Canadian stocks as well.
    The Toronto market is down for a third straight session and
has given up all its gains since the start of the year. 
    "We've been a long time without a back and fill, and people
have been sitting on capital gains since the New Year," said
David Cockfield, managing director and portfolio manager at
Northland Wealth Management.
    But the selloff is "very overdone," he added. "The economic
environment in 2014 is certainly going to be a better one than
we had in 2013," he said. 
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 109.31 points, or 0.80 percent, at 13,608.45.
    Cockfield, who sees a volatile year ahead for the TSX, said
the benchmark index could record high single-digit gains in
2014. 
    Seven of the 10 main sectors on the index were in the red on
Monday.
    Financials, the index's most heavily weighted sector,
dropped 1.4 percent. Bank of Nova Scotia slipped 2.4
percent to C$61.53 and had the biggest negative influence on the
market. Royal Bank of Canada gave back 1.6 percent to
C$69.38.
    BMO Financial Group declined 2 percent to C$70.58
after the lender made a preliminary offer to buy British fund
manager F&C Asset Management for 697 million pounds
($1.2 billion) in cash. 
    Shares of gold miners reflected declines in the price of
bullion. Barrick Gold Corp fell 2 percent to C$20.64,
and Goldcorp Inc shed 1.3 percent to C$26.26.
    Weaker oil prices dampened sentiment for shares of energy
producers, which fell 1 percent. Suncor Energy Inc was
down 0.9 percent, at C$36.59.