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