(Updates throughout with fresh details, analyst comment, market reaction)
* TSX down 327.49 points, or 2.36 percent, at 13,531.63
* All 10 of index’s main groups in the red
By Solarina Ho
TORONTO, Sept 1 (Reuters) - Canada’s main stock index fell more than 2 percent on Tuesday as the latest disappointing economic data from China spurred another round of selling in global markets and sent commodity prices lower.
Ongoing worries over China’s impact on the global economy resurfaced after data showed its manufacturing sector shrank at the fastest pace in three years, while the services sector also cooled.
“A correction is never easy,” said Michael Sprung, president at Sprung & Co. Investment Counsel. “What we’re seeing is just volatility created by reverberations of people digesting all of this information.”
Sprung expects the volatility to continue into the fall as China jitters and speculation over when and if the Federal Reserve will hike interest rates remain, noting that September and October also tend to be seasonally weak months.
The most influential decliners on the index included Royal Bank of Canada, which sank 2.8 percent to C$71.26, and Toronto-Dominion Bank, which gave up 2.6 percent to C$51.12.
Financial shares, which make up roughly a third of the index’s weight, fell 2.7 percent.
At 11:17 a.m. EDT (1517 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 327.49 points, or 2.36 percent, to 13,531.63.
“Within this environment, it’s opening a lot of opportunities for investors,” said Sprung, adding that investors should be making bids on well-managed companies with good balance sheets.
All 10 of the index’s main sectors were mired in losses, with every oil and gas name within the energy group taking a hit. The group sank 3.7 percent, hurt by volatile oil prices that tumbled more than 6 percent after having soared some 25 percent over the previous 3 sessions.
Canadian Natural Resources lost 4.1 percent to C$28.44, while Encana Corp stumbled 5.8 percent to C$9.26.
Consumer staples was the only key group whose losses were under 1 percent. Declining issues outnumbered advancing ones on the TSX by 220 to 21, for a 10.48-to-1 ratio on the downside.
Reporting by Solarina Ho; Editing by Dan Grebler