CANADA STOCKS-TSX drops as global growth concerns trigger broad decline

Thu Oct 9, 2014 11:18am EDT
 
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* TSX down 136.63 points, or 0.93 percent, at 14,529.84
    * All of 10 main index sectors decline
    * Canadian Tire jumps as it targets aggressive growth

    By John Tilak
    TORONTO, Oct 9 (Reuters) - Canada's main stock index dropped
on Thursday, dragged by declines in every major sector, as
sluggish data from Germany revived concerns about the global
economic recovery.
    Investors have of late become increasingly concerned about
Europe's economic health, with recent numbers from Germany
indicating that growth was faltering there. 
    Weakness in shares of energy producers, which reflected
sluggish oil prices, had the biggest negative influence on the
market.
    The benchmark TSX is down about 7 percent since hitting a
record high last month.
    "The market will be paying very close attention to global
growth and its impact on earnings in the upcoming earnings
season," said Macan Nia, director of the portfolio advisory
group at Manulife Asset Management.
    The theme of "synchronization of global growth" was becoming
less pronounced, he said. "Europe is slowing, and our view of
Europe is that they continue to face obstacles that monetary
policy in itself cannot solve."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 136.63 points, or 0.93 percent, at 14,529.84.
All of the 10 main sectors on the index were in the red.
    Shares of energy producers gave back 1.8 percent, reflecting
a 1.1 percent drop in the price of U.S. crude oil. Canadian
Natural Resources Ltd fell 2.5 percent to C$38.77, and
Suncor Energy Inc lost 1.7 percent to C$37.58.
    Financials, the index's most heavily weighted sector, were
down 0.3 percent. Bank of Nova Scotia slipped 0.4
percent to C$68.85.
    In corporate news, Canadian Tire Corp Ltd said it
will target average earnings per share growth of 8 to 10 percent
between 2015 and 2017 under an "aggressive plan to compete". The
stock jumped 2 percent to C$119.40. 
    Ithaca Energy Inc tumbled 8.9 percent, to C$1.75,
after the company said it lowered its pro-forma production
outlook for 2014. 
    Shares of diversified miner Teck Resources Ltd 
dropped to a five-year low after China, the world's top coal
importer, said it will levy import tariffs on the commodity.

 (Editing by Matthew Lewis)