CANADA STOCKS-TSX tumbles after central bank comment, Ottawa shooting

Wed Oct 22, 2014 1:48pm EDT
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* TSX tumbles 202.15 points, or 1.39 percent, at 14,345.56
    * All 10 main index sectors fall
    * Energy shares slide with price of oil

    By John Tilak
    TORONTO, Oct 22 (Reuters) - Canada's main stock index
dropped on Wednesday after a four-day winning streak as
investors reacted nervously to monetary policy commentary from
the Bank of Canada and news of shootings in Ottawa.
    A drop in the price of U.S. crude oil, which pulled energy
shares lower, also weighed.
    The Bank of Canada dropped any reference to taking a neutral
stance on interest rates, having already signaled it would
generally not give forward guidance on rate moves.
    Investors also processed news that a gunman shot and fatally
wounded a soldier in Ottawa and then entered the country's
parliament buildings chased by police. A suspected gunman was
shot dead inside the parliament building, a government minister
said. In a separate incident, a Canadian soldier
was shot at the National War Memorial in downtown Ottawa, media
and witnesses reported. 
    "(The shooting) contributes to the negative sentiment," said
Elvis Picardo, strategist at Global Securities in Vancouver.
"The fact that the shooting happened in Ottawa may have rattled
investors. Investors should be cautious about the
    But he said that it was too early to gauge the long-term
impact of such an event. 
    The benchmark index had rebounded in the previous four
sessions after hitting an eight-month low last week. 
    "I think today's market decline is a normal market
consolidation after a significant bounce off a bottom," said
David Cockfield, managing director and portfolio manager at
Northland Wealth Management. "The events in Ottawa could also be
having an impact on market psychology."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 202.15 points, or 1.39 percent, at 14,345.56.
All 10 main sectors on the index were in the red.
    Financials, the index's most heavily weighted sector, fell
1.2 percent. Royal Bank of Canada lost 1.1 percent to
C$79.24, and Bank of Nova Scotia dropped 1.8 percent to
    Shares of energy producers shed 2.2 percent, reflecting a
1.5 percent drop in the price of U.S. crude oil. Suncor
Energy Inc gave back 1.9 percent to C$38.13, and
Talisman Energy Inc was down 3.1 percent at C$7.48.

 (Editing by James Dalgleish)