January 6, 2014 / 4:04 PM / 7 years ago

CANADA STOCKS-TSX falls to one-week low as data weighs

* TSX falls 26.21 points, or 0.19 percent, to 13,522.65
    * Five of 10 main index sectors decline
    * RBC has biggest negative influence on market
    * Kirkland Lake drops after it weighs asset, share sales

    By John Tilak
    TORONTO, Jan 6 (Reuters) - Canada's main stock index slipped
on Monday to its lowest in more than a week, led by declines in
financial and energy shares, as investors digested soft economic
signals from around the globe.
    After recording a 9.6 percent increase in 2013, the Toronto
market was trading in negative territory for a third straight
    U.S. private sector economic activity growth slowed slightly
in December, with the services sector reading also edging lower,
according to an industry report. 
    A separate report said Chinese services industry growth
slowed sharply in 2013, adding to data released last week
indicating weakness in the manufacturing sector in the world's
second-biggest economy. 
    Some investors say more pressure on commodity prices could
weigh on gold and other materials stocks this year.
    "We expect non-commodity related companies to have a fairly
decent year in 2014," said Barry Schwartz, vice president and
portfolio manager at Baskin Financial Services.
    "You'll see a lot of dividend increases in 2014. You'll see
a lot of renewed stock buybacks. You'll see potential for more
M&A," he added.
    Fund managers will also be watching the moves of central
banks, such as the U.S. Federal Reserve, very closely. "The
drums will be pounding for central banks to increase interest
rates by late 2014," Schwartz said.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 26.21 points, or 0.19 percent, at 13,522.65,
after reaching 13,518.27, its lowest level since Dec. 27.
    Five of the 10 main sectors on the index were in the red.
    Financials, the index's most heavily weighted sector, gave
back 0.3 percent. Royal Bank of Canada lost 0.5 percent
to C$71.04, having the biggest negative influence on the market.
Bank of Nova Scotia declined 0.6 percent to C$65.04.
    Shares of energy producers were down 0.2 percent. Canadian
Natural Resources Ltd slipped 0.5 percent to C$34.84.
    But the materials sector, which includes mining stocks,
advanced 0.5 percent. Barrick Gold Corp climbed 0.9
percent to C$19.47.
    In corporate news, Kirkland Lake Gold Inc said it
has started a strategic review and may sell assets or shares.
The stock shed 7 percent to C$2.79.
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