CANADA STOCKS-TSX drops as energy shares slide with oil

Mon Oct 27, 2014 10:42am EDT
 
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* TSX down 126.34 points, or 0.87 percent, at 14,417.48
    * Six of 10 main index sectors decline
    * Energy shares fall 3.1 percent after oil price slips

    By John Tilak
    TORONTO, Oct 27 (Reuters) - Canada's main stock index
dropped on Monday as the price of oil tumbled after Goldman
Sachs cut its outlook for the commodity, pushing down shares of
energy producers.
    Goldman Sachs slashed its 2015 oil price forecasts and said
rising output will outstrip demand. 
    The decline in the price of U.S. crude oil, which has
slumped 22 percent in the last three months, has hit energy
shares hard. The energy sector has shed about 25 percent since
the middle of June, weighing on the broader market. 
    The TSX's decline on Monday follows the benchmark's biggest
weekly jump in more than a year. Fund managers said investors
should expect more volatility in the coming months.
    "I was expecting more of a U-shaped recovery, but it looks
like it's V-shaped. We'll do a little sideways here," said David
Cockfield, portfolio manager at Northland Wealth Management, of
the Canadian market's recent choppy moves.
    He said that while energy shares were looking attractive
because of the multiples, he wasn't rushing in to buy until
there were signs that prices were stabilizing.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 126.34 points, or 0.87 percent, at 14,417.48.
Six of the 10 main sectors on the index were in the red.
    Shares of energy producers fell 3.1 percent. Canadian
Natural Resources Ltd lost 3 percent to C$37.77, and
Suncor Energy Inc gave back 2.8 percent to C$37.78.
    Financials, the index's most heavily weighted sector,
declined 0.6 percent. Royal Bank of Canada was down 0.9
percent at C$78.55, and Toronto Dominion Bank dropped
0.6 percent to C$53.96.

 (Editing by James Dalgleish)