January 9, 2015 / 4:23 PM / 3 years ago

CANADA STOCKS-TSX drops after U.S. jobs data; banks, industrials fall

2 Min Read

* TSX down 66.67 points, or 0.46 percent, at 14,391.05

* Eight of the 10 main index sectors decline

* Gold-mining shares jump 3.5 percent

By John Tilak

TORONTO, Jan 9 (Reuters) - Canada's main stock index fell on Friday after a mixed U.S. payrolls report fueled declines in financial and industrial shares.

The U.S. data showed nonfarm payrolls increased in December and the unemployment rate fell to 6-1/2 year low, but a drop in wages left investors fretting.

The index did receive support from the bullion price, which was boosted by a drop in the U.S. dollar after the data, and spurred a jump in gold-mining shares.

Crude prices were in negative territory, with concerns rising about the impact of the price drop on oil companies and their production plans. The commodity has shed about 55 percent of its value since June.

The Canadian benchmark index looked set to end the week lower due to the recent oil-price dive.

"I'm pretty bearish on oil. Energy prices remain challenged, and commodities in general remain challenged," said John Stephenson, president of Stephenson & Co Capital Management.

"I think investors should be more heavily weighted in U.S. equities than in Canada," he added. "Canada will do okay and be positive this year. It just won't be hugely positive."

The Toronto Stock Exchange's S&P/TSX composite index was down 66.67 points, or 0.46 percent, at 14,391.05. Eight of the 10 main sectors on the index were in the red.

Financials, the index's most heavily weighted sector, dropped 1.6 percent. Royal Bank of Canada was down 2 percent at C$77.29, and Bank of Nova Scotia lost 1.8 percent to C$63.01.

The industrial sector gave back 0.9 percent, with Bombardier dropping 3.6 percent to C$3.98.

Gold miners jumped 3.5 percent, with Goldcorp Inc advancing 4 percent to C$24.28 and Barrick Gold Corp gaining 1.3 percent to C$12.95.

$1=$1.19 Canadian Editing by Peter Galloway

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