December 1, 2014 / 4:28 PM / 3 years ago

CANADA STOCKS-TSX hit by weak global economic cues, energy shares

2 Min Read

* TSX down 141.38 points, or 0.96 percent, at 14,603.02

* Seven of 10 main index sectors decline

* Gold-mining shares soar with bullion price

By John Tilak

TORONTO, Dec 1 (Reuters) - Canada's main stock index dropped about 1 percent on Monday as sluggish economic data raised concerns about global growth and volatile oil prices contributed to weakness in the energy sector.

Manufacturing growth in Asia and Europe slowed in November due to weak demand, and the U.S. manufacturing sector growth hit its lowest in 10 months, separate reports showed.

Oil prices remained volatile, slipping to a five-year low before recovering. The choppiness sent shares of energy producers down 3.1 percent.

The broader Canadian benchmark has been pulled down by recent weakness in energy shares, which have lost more than one-third of their value since the middle of June.

"No one knows how far oil prices could fall," said John Ing, president of Maison Placements Canada. "We're getting the emotional reaction, we are getting the volume reaction, but we're nowhere near a bottom yet."

"This is going to drag down the TSX," he added.

The Toronto Stock Exchange's S&P/TSX composite index was down 141.38 points, or 0.96 percent, at 14,603.02. Seven of the 10 main sectors in the index were in the red.

Among energy producers, Canadian Natural Resources Ltd shed 2.6 percent to C$36.98 and Suncor Energy Inc lost 2.2 percent to C$35.05.

Financials, the most heavily weighted sector, gave back 0.5 percent. Bank of Montreal was down 1.2 percent at C$82.82.

The gold-mining sector was a bright spot, jumping 3.6 percent as the bullion price surged. Goldcorp Inc added 3.8 percent to C$23.25.

In corporate news, mining company Tahoe Resources Inc said the Guatemalan Congress passed legislation that would raise the royalty rate in the mining law. The stock dropped 6.8 percent to C$16.56. (Editing by Jeffrey Benkoe)

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