CANADA STOCKS-TSX fall gets deeper as financial, energy shares drag

Wed Oct 1, 2014 11:06am EDT
 
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* TSX down 80.59 points, or 0.54 percent, at 14,879.92
    * Eight of the 10 main index sectors decline
    * Market down in eight of past nine sessions

    By John Tilak
    TORONTO, Oct 1 (Reuters) - Canada's main stock index
extended its recent steep slide on Wednesday on weakness in the
financial and energy sectors as concerns about the rise of the
U.S. dollar and sluggish commodity prices continued to dog the
market.
    The benchmark has dropped in eight of its past nine
sessions.
    Adding pressure on Wednesday, a business survey from the
euro zone showed manufacturing growth in the region slowed in
September as new orders contracted for the first time in more
than a year. 
    The Toronto stock market's benchmark index fell 4.3 percent
in September, its biggest monthly drop since May 2012. As well
as the U.S. dollar rally and softening commodity prices,
geopolitical tensions and worries that the U.S. Federal Reserve
will raise interest rates sooner than expected have nagged the
market.
    "I'm still on the fence, waiting," said David Cockfield,
managing director and portfolio manager at Northland Wealth
Management, who is concerned that the correction could deepen.
    The market faces the risk of falling another 5 percent
before recovering, he added.
    "As we move into the quarter, we could have a better idea of
economic growth and earnings," Cockfield said. He expects the
Canadian market to outperform U.S. stocks this year.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 80.59 points, or 0.54 percent, at 14,879.92.
Eight of the 10 main sectors on the index were in the red.
    Financials, the index's most heavily weighted sector,
dropped 0.6 percent, with Royal Bank of Canada losing
0.2 percent to C$79.94 and Bank of Montreal falling 0.4
percent to C$82.12.
    Shares of oil and gas producers declined 0.7 percent.
Canadian Natural Resources Ltd dropped 1.1 percent to
C$43.03, and Talisman Energy Inc declined 0.4 percent
to C$9.65.
    ($1=$1.12 Canadian)

 (Editing by Peter Galloway)