CANADA STOCKS-China worry hits Canada's TSX hard

Mon Jul 27, 2015 4:58pm EDT
 
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(New throughout, updates prices and market activity, adds comment from portfolio manager)

* TSX ends down 184.87 points, or 1.3 percent, at 14,001.37

* All but one of 10 main groups fall; Valeant boosts health stocks

By Alastair Sharp

TORONTO, July 27 (Reuters) - Canada's main stock index fell sharply on Monday, hitting its lowest level since January, in a broad retreat as heavyweight resource-based companies dipped on lower commodity prices and the latest plunge in Chinese equities.

The 1.3 percent drop was the seventh straight session of losses for the Toronto Stock Exchange's S&P/TSX composite index , and its first day trading below 14,000 since January.

"There is a 'Sell Canada' theme going on," said Diana Avigdor, portfolio manager and head of trading at Barometer Capital Management. "At some point we're going to have a respite, but that's not an investment thesis."

Five of the six most influential weights were financial stocks, which overall lost 1.5 percent. Toronto-Dominion Bank fell 1.7 percent to C$50.99 and Royal Bank of Canada declined 1.4 percent to C$73.52.

The index lost 184.87 points to close at 14,001.37, with the energy group falling 2.8 percent and materials names shedding 3.1 percent. It fell as low as 13,956.05 during the session, a level last seen on Jan. 14.   Continued...