CANADA STOCKS-TSX stumbles on China, Ukraine worries

Mon May 5, 2014 4:42pm EDT
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* TSX falls 68.12 points, or 0.46 percent, to 14,697.03
    * Nine of 10 main index sectors decline
    * Oil prices weigh on energy shares

    By John Tilak
    TORONTO, May 5 (Reuters) - Canada's main stock index dropped
on Monday as disappointing economic data from China and violence
in Ukraine spurred declines in almost every major sector. 
    A private survey showed a fall in Chinese manufacturing
sector activity for a fourth consecutive month in April,
renewing concerns about whether the world's second-biggest
economy will be able to sustain its pace of growth.
    Also rattling the market was news that pro-Russian rebels
shot down a Ukrainian helicopter in fierce fighting near the
eastern town of Slaviansk. 
    Despite Monday's weakness, the Canadian benchmark is up
about 8 percent this year as natural resource shares have
    "The TSX has been on a real roll of late, so today it's a
little bit of a giveback," said Elvis Picardo, strategist and
vice president of research at Global Securities in Vancouver.
    "China is one concern that is weighing on the day," he
added. "If there's any hint of sustained weakness in China, it
does cause some nervousness here."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 68.12 points, or 0.46 percent, at
    Investors can expect greater volatility in the coming months
even as the TSX moves higher, Picardo said. "It's getting to the
point where investors have to be a little cautious about the
downside risk."
    Nine of the 10 main sectors on the index were in the red on
    Shares of energy producers gave back 0.4 percent, reflecting
weakness in oil prices. Canadian Natural Resources Ltd 
lost 0.4 percent to C$44.79, and Suncor Energy Inc 
declined 0.3 percent to C$43.08.
    Financials, the index's most heavily weighted sector, shed
0.2 percent, with Toronto-Dominion Bank falling 0.3
percent to C$52.22.
    The materials sector, which includes mining stocks, slipped
0.9 percent. Teck Resources Ltd was down 2.7 percent
at C$24.74, and Barrick Gold Corp declined 0.2 percent
to C$19.10.
    In corporate news, BlackBerry Ltd disclosed that
U.S. real estate investment company Spear Street Capital is
buying most of the technology firm's Canadian real estate
holdings for C$305 million ($278 million). BlackBerry shares
were down 3 percent at C$8.68. 
    ($1=$1.10 Canadian)

 (Editing by Peter Galloway)