CANADA STOCKS-China data, Ukraine tensions pull TSX lower

Tue Aug 5, 2014 5:01pm EDT
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* TSX down 27.55 points, or 0.18 percent, at 15,187.71
    * Five of the 10 main index sectors decline
    * Saputo gains after quarterly report

    By John Tilak
    TORONTO, Aug 5 (Reuters) - Canada's main stock index
declined on Tuesday as sluggish economic data from China and
renewed geopolitical tensions in Ukraine weighed on the market.
    Growth in China's services sector slowed sharply in July to
a near nine-year low, a survey indicated. 
    Also dragging on the market was a comment by Polish foreign
minister Radoslaw Sikorski, who said Russia has gathered
military forces on its border with Ukraine to either pressure
Ukraine or to enter it. 
    The Toronto stock market's resource-sensitive benchmark
index, which shed 1.6 percent last week, extended the slide on
Tuesday as resource shares dropped as the prices of commodities
such as copper and oil traded lower. The market was closed
Monday for a holiday.
    "Investors will be very well served to be prepared for a
correction even if this (selloff) doesn't materialize into
something more severe," said Craig Fehr, Canadian market
strategist at Edward Jones in St. Louis, Missouri. 
    "When you couple some of the prevailing risks that exist out
there with the exceptional gains we've seen in the stock market,
that is exacerbating some of the concerns that we have at the
moment," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 27.55 points, or 0.18 percent, at
15,187.71. Five of the 10 main sectors on the index were in the
    Financials, the index's most heavily weighted sector,
declined. In the group, Bank of Nova Scotia lost 0.2
percent to C$73.32, and Toronto-Dominion Bank fell 0.5
percent to C$56.24.
    Shares of energy producers followed oil prices lower, with
Suncor Energy Inc slipping 0.6 percent to C$43.19 and
Encana Corp losing 0.6 percent to C$22.92.
    Recent acquisitions helped Saputo Inc post a higher
quarterly profit. Shares of the dairy producer climbed 2 percent
to C$68.95. 
    A large pond holding waste matter at an Imperial Metals Corp
 gold and copper mine in central British Columbia
spilled gray sludge into waterways. Shares of the miner dived
40.6 percent to C$9.98. 
    ($1=$1.09 Canadian)

 (Editing by Peter Galloway)