CANADA STOCKS-TSX slides as resources, banks drag

Mon Aug 31, 2015 11:56am EDT
 
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(Updates throughout with analyst comment, details, market reaction)

* TSX down 128.46 points, or 0.93 percent, to 13,736.61

* Eight of the TSX's 10 main groups down

By Solarina Ho

TORONTO, Aug 31 (Reuters) - Canada's main stock index, coming off a rebound last week, slumped more than 1 percent on Monday as resource stocks resumed their slump on falling commodity prices.

The index, which had been steadily declining since April, sank to its lowest level since 2013 last week on investor worries over China's economic growth. Those concerns remain, while excess crude supply also is weighing on crude prices.

"I think we're into our period of seasonal weakness, which usually runs from mid-August to mid-October," said Douglas Davis, chief executive officer at Davis-Rea, adding that the market has broadly risen for the last seven years without a solid correction.

"It's way overdue. And it should go further. We need a good decline to destabilize the market and get it ready again."

At 11:27 a.m. EDT (1527 GMT), the Toronto Stock Exchange's S&P/TSX composite index fell 128.46 points, or 0.93 percent, to 13,736.61. At one point, it was down 1.53 percent to 13,653.87.   Continued...