(Adds portfolio manager comment, updates prices to close)
* TSX ends down 101.13 points, or 0.71 percent, at 14,238.40
* Half of the TSX's 10 main groups fall
* Five declining stocks for every two gainers on index
By Alastair Sharp
TORONTO, Aug 13 (Reuters) - A slump in energy shares helped
push Canada's main stock index to its third straight loss on
Thursday as U.S. oil prices slid to fresh lows, though a Chinese
central bank assurance on the yuan reduced some investor fears.
Energy stocks stumbled 3 percent as crude prices took
another beating. U.S. crude CLc1 prices were down 2.4 percent
to $42.25 a barrel, while Brent crude LCOc1 lost 0.8 percent
to $49.27. O/R
In the group, Canadian Natural Resources CNQ.TO declined
3.1 percent to C$30.96, while Suncor Energy Inc SU.TO fell 1.7
percent to C$36.85.
"I don't believe oil can be at this level for a prolonged
period of time," said Manash Goswami, a portfolio manager at
First Asset Investment Management. "The big issue is that supply
is still outstripping demand."
Crescent Point Energy CPG.TO shares ended off 1.6 percent
at C$17.58, after the oil producer slashed its dividend, a move
widely expected by investors who have recently punished the
stock.
This week's devaluation of the Chinese currency pulled
commodity prices down on concern China would not import as much.
On Thursday, China's central bank helped restore some calm
to jittery global markets, saying there was no reason for the
yuan CNY=CFXS to fall further given the country's strong
economic fundamentals.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE finished off 101.13 points, or 0.71 percent, at
14,238.40. Five of the 10 main sectors fell, and there were more
than five decliners for every two advancing stocks.
Retailer Canadian Tire Corp CTCa.TO put more pressure on
the market, tumbling 3.2 percent to C$126.31 after reporting
lower-than-expected quarterly profit on slower sales growth.
"It's probably going to be challenging over the next few
months. We're watching volatility very carefully," said Sid
Mokhtari, market technician and director, institutional equity
research, CIBC World Markets.
Financial stocks, which make up roughly a third of the
index, weighed heavily, hurt in part by Canada's low
interest-rate environment and by banks' ties to the battered oil
and gas industry, Mokhtari said.
Toronto-Dominion Bank TD.TO fell 1 percent to C$52.05. The
overall financials group, which also includes life insurance
companies, retreated 0.8 percent.
The materials sector, home to miners, gave up 2.4 percent,
with gold miners leading the losses. Goldcorp Inc G.TO sank
4.5 percent to C$18.89.
Gold futures GCc1 fell 0.8 percent to $1,114.40 an ounce,
snapping five sessions of gains as the U.S. dollar .DXY firmed
on U.S. economic data and easing concern over China's yuan.
($1=$1.31 Canadian)