CANADA STOCKS-TSX slips as China devaluation hits resource shares

Tue Aug 11, 2015 4:41pm EDT
 
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(Adds analyst comment, updates prices to close)

* TSX ends down 51.72 points, or 0.36 percent, at 14,414.67

* Seven of TSX's 10 main groups drop

By Alastair Sharp

TORONTO, Aug 11 (Reuters) - Canada's resource-laden main stock index fell back on Tuesday, as oil and mining stocks were hit by a rout in commodity prices following China's unexpected move to devalue its currency.

The Toronto Stock Exchange's S&P/TSX composite index sank as much as 1.4 percent before paring those losses to close down 51.72 points, or 0.36 percent, at 14,414.67. Seven of the 10 main sectors lost ground.

The People's Bank of China devalued the yuan by nearly 2 percent overnight in China's latest attempt to bolster its economy following a string of poor economic data.

"It's created more negativity," said Brian Pow, an equity analyst at Acumen Capital Partners in Calgary. "We've seen it in the oil price getting pushed down hard."

Prices for copper, aluminum and U.S. crude oil hit six-year lows on concerns the cheaper yuan will make importing commodities more expensive for China, which is among the world's top consumers of resources.   Continued...