CANADA STOCKS-TSX tumbles as global growth concerns deepen

Thu Oct 9, 2014 5:04pm EDT
 
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* TSX down 205.87 points, or 1.40 percent, at 14,460.60
    * Nine of the 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
sharply on Thursday as worries about the health of the global
economy hit investor sentiment and shares of energy producers
dived as oil prices fell. 
    Sluggish data from Germany added to concerns about the
global economic recovery that had been triggered earlier this
week by a bearish global growth forecast from the International
Monetary Fund.
    Investors have of late become increasingly concerned about
the European economy, with figures from Germany indicating that
growth there has been faltering. 
    Weakness in shares of energy producers, reflecting sluggish
oil prices, had the biggest negative influence on the index.
    The Toronto stock market's benchmark TSX is down nearly 8
percent since hitting a record high last month.
    "It looks like the selloff has taken a life of its own,"
said Elvis Picardo, strategist at Global Securities in
Vancouver, who said investors were worried about a potential
slowdown in global growth.
    "We haven't seen the r-word creep into the conversation yet,
but we've seen a distinct economic stall in Japan, Germany and
even Canada," he added, referring to the word "recession".
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 205.87 points, or 1.40 percent, at
14,460.60. Nine of the 10 main sectors on the index were in the
red.
    Shares of energy producers fell 2.8 percent, mirroring a 3
percent drop in the price of U.S. crude oil. Canadian Natural
Resources Ltd dropped 1.8 percent to C$39.06, and
Suncor Energy Inc lost 1.9 percent to C$37.51.
    Financials, the index's most heavily weighted sector, were
down 0.4 percent. Bank of Nova Scotia slipped 0.2
percent to C$69.02.
    In corporate news, Canadian Tire Corp said it will
target average earnings per share growth of 8-10 percent between
2015 and 2017 under an "aggressive plan to compete". The stock
jumped 3.1 percent to C$120.67. 
    Ithaca Energy Inc tumbled 9.9 percent to C$1.73 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 coal. 
    ($1=$1.12 Canadian)

 (Editing by Matthew Lewis; and Peter Galloway)