CANADA STOCKS-Energy, mining shares pull TSX lower in choppy trade

Thu Oct 2, 2014 4:54pm EDT
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* TSX down 44.80 points, or 0.3 percent, at 14,760.64
    * Six of 10 main index sectors decline
    * CP Rail jumps on revenue growth forecast

    By John Tilak
    TORONTO, Oct 2 (Reuters) - Canada's main stock index fell in
a volatile session on Thursday as weakness in oil prices weighed
on energy shares and a drop in copper prices hit mining
    Fueled by a sharp selloff in oil prices earlier in the
session, the resource-heavy index hit a four-month low before
recovering some of those losses. 
    Stock markets around the world have been under pressure
because of worries about the strength of the global economic
recovery and news of the first confirmed case of Ebola in the
United States. The Toronto stock market's benchmark index has
fallen in nine of the last 10 sessions.
    Geopolitical tensions and concerns about when the U.S.
Federal Reserve will raise interest rates have also been a drag.
Markets expect that the monthly U.S. payrolls report on Friday
might provide some clues on the direction of Fed policy.
    "People are starting to think about risk again," said Marcus
Xu, portfolio manager and president of M.Y. Capital Management
Corp in Vancouver, who expects more selling pressure in the
weeks ahead.
    "I don't think this is it," he added. "We think this
correction is going to go a little longer and a little deeper."
    Despite the recent selloff, Xu expects the Canadian
benchmark to outperform U.S. stocks this year.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 44.80 points, or 0.3 percent, at
14,760.64. Six of the 10 main sectors on the index were in the
    Shares of oil and gas producers gave back 0.8 percent.
Canadian Natural Resources Ltd declined 0.6 percent to
C$41.89, and Talisman Energy Inc shed 3.6 percent to
    The group is down more than 16 percent since June.
    The mining subsector dropped 1 percent, dragged lower by the
fall in copper prices. First Quantum Minerals Ltd lost
1.2 percent to C$21.11, and Teck Resources Ltd was
down 0.8 percent at C$20.57.
    Financials, the index's most heavily weighted sector, lost
0.4 percent. Bank of Nova Scotia fell 1.1 percent to
C$68.92, and Toronto-Dominion Bank was down 0.7 percent,
at C$53.97.
    Canadian Pacific Railway Ltd jumped 5.3 percent to
C$234.70 after the company said on Wednesday it planned to raise
annual revenue to C$10 billion by 2018. 
  ($1=$1.12 Canadian)

 (Editing by Peter Galloway)