December 8, 2015 / 3:52 PM / in 2 years

CANADA STOCKS-TSX falls to 15-week low as oil price slump drags

(Adds details, updates prices)

* TSX falls 128.39 points, or 0.98 percent, to 12,914.44

* All of the TSX’s 10 main groups lose ground

TORONTO, Dec 8 (Reuters) - Canada’s main stock index hit a more than 15-week low on Tuesday as crude oil prices fell to their lowest since 2009, leading to broad retreats in the resource-linked market.

The biggest weight on the index were the major banks, which last week all reported a rise in bad loans in the energy sector from a year earlier. Investors worried that this could turn into more writedowns and losses.

Royal Bank of Canada fell 1.5 percent to C$74.28, and Toronto-Dominion Bank declined 1.2 percent to C$53.42. Insurer Manulife Financial Corp lost 1.7 percent to C$21.46.

At 10:08 a.m. EST (1508 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 128.39 points, or 0.98 percent, at 12,914.44, its weakest since Aug. 24.

That August low came in the midst of a global market rout that pulled Chinese stocks down 9 percent and sent commodity prices tumbling. The S&P/TSX has been under 13,000 points only once since then and before that not since October 2013.

All 10 main sectors lost ground on Tuesday. Five stocks declined for every gainer, and 46 set 52-week lows.

The energy group retreated 0.5 percent, while financials lost 1.2 percent, and the industrials group fell 2.1 percent.

Canadian Pacific Railway Ltd declined 4 percent to C$169.10 after it revised its bid for Norfolk Southern Corp and was promptly rejected again.

Rival Canadian National Railway Co fell 1.5 percent to C$72.87.

Valeant Pharmaceuticals International Inc added 0.6 percent. Reuters reported that the company was seeking potential buyers for its specialty contact lens manufacturing division, according to two sources.

Earlier on Tuesday, U.S. crude oil fell below $37 per barrel and Brent below $40 for the first time since early 2009 on fears that the world was running out of storage capacity as a global glut intensifies. (Reporting by Alastair Sharp; Editing by Lisa Von Ahn)

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