CANADA STOCKS-TSX slips as energy, gold shares tumble

Tue Jul 15, 2014 4:51pm EDT
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* TSX down 89.91 points, or 0.59 percent, at 15,081.32
    * Eight of 10 main index sectors decline
    * Oil-price fall weighs on energy shares

    By John Tilak
    TORONTO, July 15 (Reuters) - Canada's main stock index
dropped on Tuesday amid a selloff in shares of energy and gold
producers as investors focused on congressional testimony by
U.S. Federal Reserve Chair Janet Yellen.
    Oil prices tumbled to a three-month low before recovering
some of those losses as output from Libya increased, easing some
of the market's concerns. The bullion price slipped after the
Fed commentary.  
    Yellen told a Senate committee that the U.S. economic
recovery remains incomplete, with a still-ailing job market and
stagnant wages justifying loose monetary policy for the
foreseeable future. 
    "It's going to be status quo for quite a while. It's going
to be a low interest rate environment for quite some time. That
could be the new reality," said Kevin Headland, director,
portfolio advisory group, at Manulife Asset Management.
    He expects the market to moderate after a strong run-up in
recent months.
    "I don't see how we can get that much higher on the TSX
based on fundamentals," he added. "I don't think future earnings
growth is going to be that robust."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 89.91 points, or 0.59 percent, at
15,081.32. The Canadian benchmark has been one of the strongest
performers among global stock market indexes this year, rising
about 11 percent.
    Eight of the 10 main sectors on the index were in the red on
    The gold-mining sector extended its slide from the previous
session. Barrick Gold Corp shed 2.6 percent to C$19.71,
and Goldcorp Inc fell 2.5 percent to C$29.03.
    Shares of energy producers were hit by the oil-price
decline. Canadian Natural Resources Ltd gave back 2.3
percent to C$47.41, and Suncor Energy Inc lost 1.8
percent to C$44.19.
    Financials, the index's most heavily weighted sector,
advanced 0.3 percent. Royal Bank of Canada climbed 0.6
percent to $79.19, and Bank of Nova Scotia added 0.4
percent to C$72.76. 
    ($1=$1.08 Canadian)

 (Editing by Peter Galloway and Tom Brown)