* TSX down 120.73 points, or 0.94 percent, at 12,669.22
* Energy and materials sectors lose more than 2.5 pct each
TORONTO, Dec 14 (Reuters) - Canada’s main stock index fell to a more than two-year low on Monday as energy and mining stocks weighed amid signs of a worsening oil glut and losses in gold and copper prices.
The energy group retreated 2.6 percent, while materials stocks fell 2.7 percent.
The two resource-related groups, which together account for more than a quarter of the index’s weight, have been its worst performers this year as oil and other commodity prices slumped.
Encana Corp fell 9 percent to C$7.56 after the oil and natural gas producer slashed its dividend and cut its 2016 capital budget. Suncor Energy Inc declined 2.0 percent to C$34.52.
At 10:34 a.m. EST (1534 GMT), the Toronto Stock Exchange’s S&P/TSX composite index fell 120.73 points, or 0.94 percent, to 12,669.22.
It touched its lowest level since September 2013 in the first hour of trade. It lost 4.3 percent last week.
Oil prices tumbled 4 percent, nearing an 11-year low on growing fears a global oil glut would worsen in coming months in a pricing war between leading OPEC and non-OPEC producers.
U.S. crude prices were down 0.7 percent to $35.38 a barrel, while Brent crude lost 2.4 percent to $37.02. .
Gold futures fell 0.6 percent to $1,070.9 an ounce, copper prices declined 0.7 percent to $4,669.5 a tonne.
Goldcorp Inc fell 2.8 percent to C$16.05, while fertilizer producer Potash Corp lost 2.6 percent to C$23.23.
Telecoms climbed 0.7 percent, with BCE Inc rising 1 percent to C$54.52, and Telus Corp advancing 0.8 percent to C$39.40.
The consumer staples group climbed 0.6 percent, with convenience store operator Alimentation Couche-Tard up 1.1 percent to C$62.02 and grocery store chain Loblaw Cos added 0.9 percent to C$65.21.
Declining issues outnumbered advancers by 203 to 33, for a 6.15-to-1 ratio on the downside.
The index was posting one new 52-week high and 36 new lows. (Reporting by Alastair Sharp; Editing by Meredith Mazzilli)
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