CANADA STOCKS-TSX hits eight-month low, enters 'correction territory'

Tue Oct 14, 2014 11:12am EDT
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* TSX down 227.52 points, or 1.6 percent, at 13,999.84
    * Nine of the 10 main index sectors decline
    * Energy shares tumble as oil prices weaken

    By John Tilak
    TORONTO, Oct 14 (Reuters) - Canada's main stock index sank
to an eight-month low on Tuesday, bringing its drop from last
month's record high to more than 10 percent, after a dim outlook
for oil demand weighed on the commodity's price and on the
shares of energy producers.
    The International Energy Agency cut its forecast for growth
in oil demand in 2014 and said that it expects demand growth in
2015 to be much weaker than it had previously forecast.
    The Toronto stock market's heavyweight energy sector tumbled
3.8 percent and is down about 26 percent since mid June. The
market's benchmark TSX index has also been diving, shedding 10.5
percent since hitting a record high last month.
    "With today's decline, we are now officially in correction
territory," said Craig Fehr, Canadian market strategist at
Edward Jones in St. Louis, Missouri. 
    "We're seeing a weakness, a return to volatility, something
North American markets haven't seen in a while," he said.
"(These pullbacks) will be more of the norm than the exception
going forward."
    Fehr expects the Canadian market to be under pressure
because of volatile commodity prices. "It's a reflection that on
a global scale, economic growth hasn't hit its stride."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 227.52 points, or 1.6 percent, at 13,999.84.
Nine of the 10 main sectors on the index were in the red.
    Shares of energy producers dropped as the price of Brent
crude oil fell 2.6 percent. Canadian Natural Resources Ltd
 gave back 5.5 percent to C$36.38, and Suncor Energy Inc
 lost 2.4 percent to C$35.79.
    Financials, the index's most heavily weighted sector,
declined 1.1 percent. Royal Bank of Canada was down 1.3
percent at C$78.63, and Bank of Nova Scotia fell 1.3
percent to C$67.11.
    ($1=$1.12 Canadian)

 (Editing by Peter Galloway)