CANADA STOCKS-Pessimism reigns as economic gloom weighs on TSX

Fri May 29, 2015 5:07pm EDT
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(Adds strategist comment; updates prices to close)

* TSX ends down 92.91 points, or 0.62 percent, at 15,014.09

* Eight of 10 main sectors in the red

By Alastair Sharp

TORONTO, May 29 (Reuters) - Canada's main stock index fell on Friday, with heavyweight banks tipping the scales to the downside amid broad pessimism about domestic economic growth and the uncertain outlook for industries tied to energy.

The Toronto Stock Exchange's S&P/TSX composite index ended down 92.91 points, or 0.62 percent, at 15,014.09. Eight of the 10 main sectors were in the red, and the index gave up 1.2 percent for the week.

"We're still comfortable being underweight Canada," said Paul Taylor, chief investment officer for asset allocation at BMO Global Asset Management Canada. "The market has not fully accepted or discounted how weak earnings are going to be."

Canada's economy suffered its biggest contraction in nearly six years in the first quarter as the country grappled with a steep fall in oil prices, Statistics Canada said.

All six of the country's biggest banks beat earnings estimates this week, but only Bank of Nova Scotia shares gained on Friday, up 1.3 percent at C$65.40, as the No. 3 lender outlined a share buyback plan.   Continued...