CANADA STOCKS-TSX slumps as U.S. selloff darkens mood

* TSX falls 127.58 points, or 0.88 percent, to 14,308
    * All of 10 main index sectors decline
    * Goldcorp slips after raising bid for Osisko

    By John Tilak
    TORONTO, April 10 (Reuters) - Canada's main stock index
dropped on Thursday as a selloff in U.S. technology and
biotechnology stocks hit investor sentiment and fueled declines
in every major sector.
    Further dampening the mood, data showing a significant fall
in Chinese imports and exports suggested that a slowdown in the
world's second-largest economy was taking hold. 
    The market brushed aside figures indicating the number of
Americans filing new claims for unemployment benefits dropped
last week to a near seven-year low. 
    Worries about Fed policy and a feeling that stock prices
were getting extended have roiled markets over the past week and
sparked a surge in volatility. 
    Those fears took center stage again on Thursday, a day after
global equity markets rallied on comments from the Federal
Reserve that helped ease concerns the U.S. central bank might
adopt a more aggressive timetable for raising interest rates.
    "There's a feeling that maybe stocks have run ahead of
reality," said Fred Ketchen, director of equity trading at
    "The market is a little nervous today," he added. "The
nervousness has brought out a raft of sellers who have decided
it's better to take some money out of the market, sit on the
sidelines and wait for things to calm down."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 127.58 points, or 0.88 percent, at 14,308.
It is up about 5 percent this year.
    "We've had a nice run to start the year, but the TSX will
likely be flatlined from this point forward," said Shailesh
Kshatriya, associate director for client investment strategies
at Russell Investments Canada. 
    He is cautious about the potential for more upside in gold
and oil prices. Energy and mining stocks are heavily weighted on
the benchmark Toronto index.
    All of the 10 main sectors on the index were in the red on
    Financials, the index's most heavily weighted sector, fell
1.1 percent. Toronto-Dominion Bank gave back 1.5 percent
to C$51, and Bank of Nova Scotia lost 1 percent to
    The gold-mining sector declined 1.4 percent, oblivious to a
jump in the price of the precious metal. Barrick Gold Corp
 gave back 0.3 percent to C$20.54.
    Goldcorp Inc shed 3.6 percent, to C$26.84, after the
miner raised its takeover offer for Osisko Mining Corp 
to about C$3.6 billion ($3.3 billion) in an attempt to top a bid
from Yamana Gold Inc. 
    Osisko shares gained 0.4 percent to C$7.58, while Yamana
shares lost 1.7 percent to C$9.44.
    ($1=$1.09 Canadian)

 (Editing by Peter Galloway and Chris Reese)