CANADA STOCKS-TSX hits six-week low on China fears, commodity prices

Mon Sep 22, 2014 4:38pm EDT
 
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* TSX down 136.35 points, or 0.89 percent, at 15,129
    * Eight of the 10 main index sectors decline
    * Tekmira jumps after regulators approve Ebola treatment

    By John Tilak
    TORONTO, Sept 22 (Reuters) - Canada's main stock index
declined to its lowest in six weeks on Monday with worries about
an economic slowdown in China and a drop in commodity prices
weighing on shares of natural resource producers.
    A Reuters poll showed growth in the Chinese factory sector
likely stalled in September. Further, the country's finance
minister said that China will not dramatically alter its
economic policy because of any one economic indicator.
  
    The slide of Toronto stock market's benchmark index extended
Friday's fall, which was its biggest single-day drop in seven
months.
    "So far it doesn't seem like a bloodbath or a slaughter.
It's just a pulling off," said Bill Harris, portfolio manager at
Avenue Investment Management.
    He said he was being cautious on the Canadian energy and
mining sectors but would look to add to his positions if the
market sells off further.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 136.35 points, or 0.89 percent, at 15,129.
Eight of the 10 main sectors on the index were in the red.
    Shares of energy producers shed 2 percent, mirroring a drop
in the price of oil. Suncor Energy Inc dropped 1.6
percent to C$41.33, and Talisman Energy Inc fell 2.4
percent to C$9.82.
    The gold-mining sector was down 1.9 percent with Barrick
Gold Corp losing 0.6 percent to C$17 and Goldcorp Inc
 declining 0.6 percent to C$25.75. 
    In corporate news, Tekmira Pharmaceuticals Corp 
said that U.S. and Canadian regulators have authorized the use
of its Ebola treatment in patients who have confirmed or
suspected infections from the deadly virus. Shares of the
drugmaker jumped 15 percent to C$26.01. 
    ($1=$1.10 Canadian)

 (Editing by Peter Galloway)