CANADA STOCKS-TSX drops as China market dive hits commodities prices

Tue Aug 18, 2015 11:58am EDT
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(Adds analyst's comment, market developments)

* TSX down 26.26 points, or 0.18 percent, to 14,225.27

* Seven of the TSX's 10 main groups fell

By Solarina Ho

TORONTO, Aug 18 (Reuters) - Canada's main stock index dropped on Tuesday with most of its sectors under pressure as market sentiment around the world took a hit from a 6 percent plunge in Chinese shares, which helped push commodity prices to multiyear lows.

China's currency also weakened against the greenback, sparking fears that a deeper devaluation of the yuan may lie ahead.

"Usually the last couple of weeks of August are pretty quiet. This year, there's a lot of going on," said Bryden Teich, associate portfolio manager at Avenue Investment Management.

"The continuation of a selloff for all commodities is something that's also lingered on. It's a period of pain for a lot of the commodity industries and producers."

Energy shares on the Toronto market have been hit particularly hard this year with oil prices dropping to near 6-1/2 year lows. Teich said there is still too much crude supply globally and that it is impossible to predict when oil prices will bottom.   Continued...