CANADA STOCKS-TSX declines as China data spurs energy-sector weakness

Mon Nov 3, 2014 10:54am EST
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* TSX down 68.25 points, 0.47 percent, at 14,545.07
    * Seven of the 10 main index sectors decline
    * Energy shares lead fall

    By John Tilak
    TORONTO, Nov 3 (Reuters) - Canada's main stock index dropped
on Monday as sluggish economic data from China and a fall in the
oil price weighed on shares of energy producers.
    Figures showed that growth in the Chinese services sector
slumped to a nine-month low in October, highlighting concerns of
a slowdown in the world's second-biggest economy.
    Further, the U.S. dollar has been surging since the Bank of
Japan unveiled fresh stimulus measures late last week, and that
has put pressure on commodity prices such as oil and bullion.
    The Toronto stock market's energy sector, which has lost
nearly a quarter of its value since the middle of June, had the
biggest negative influence on the benchmark index. 
    "Sentiment is weak. I don't think the energy sector will
come roaring back anytime soon," said Ian Nakamoto, director of
research at MacDougall, MacDougall & MacTier.
    Continuing weakness in the energy group could have
repercussions for the broader Canadian economy, he said.
    However, he noted that valuations in the group have been
looking attractive and investors could take advantage of the
lower prices if they are looking at a longer-term strategy.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 68.25 points, 0.47 percent, at 14,545.07.
Seven of the 10 main sectors on the index were in the red. 
    Among energy shares, Canadian Natural Resources Ltd 
dropped 1.8 percent to C$38.63, and Suncor Energy Inc 
declined 1 percent to C$39.63.
    Financials, the index's most heavily weighted sector, was
down 0.4 percent. Bank of Nova Scotia shed 0.5 percent
to C$68.67, and Toronto-Dominion Bank fell 0.3 percent
to C$55.29.
    (41=$1.13 Canadian) 

 (Editing by Peter Galloway)