(Updates market action and adds analyst's comments)
* TSX down 166.53 points, or 1.19 percent, at 13,870.1
* Nine of the TSX's 10 main groups fall
By Solarina Ho
TORONTO, Aug 20 (Reuters) - Canada's main stock index sank
more than 1 percent on Thursday, hitting the lowest level of the
year, as investor concern about prospects for global economic
growth continued to cast a pall over markets.
The TSX index was on track for its ninth decline in 11
sessions, with most of its main sectors giving up 1 to 2 percent
by late morning.
"It's really, really ugly," said Paul Taylor, chief
investment officer of asset allocation at BMO Asset Management.
"The global economic backdrop is not particularly robust. And
Canada's just getting crushed by oil."
Royal Bank of Canada RY.TO was among the heaviest drags on
the index, shedding 1.8 percent to C$74.37. Toronto-Dominion
Bank TD.TO was not far behind, declining 1.1 percent to
C$51.38.
The index's hefty financial group, which has been squeezed
by a low interest rate environment and its close ties with
commodities-related companies, retreated 1.2 percent. Banks are
also coming into the spotlight ahead of quarterly earnings
reports next week.
At 11:34 a.m. EDT (1534 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 166.53 points, or
1.19 percent, at 13,870.1.
Declining issues outnumbered advancers by about a 3-to-1
ratio, with stocks on the index posting one new 52-week high and
42 new lows.
Energy stocks, which have fallen more than 11 percent
through eight straight sessions of declines, were trading at the
lowest levels since 2004.
The group was down 0.6 percent as U.S. crude prices, which
have sunk as low as $40.21 a barrel on worries of a global glut
and softening demand, remained around C$41. O/R
In the sector, Enbridge Inc ENB.TO fell 2.0 percent to
C$52.74.
Taylor said any index turnaround will hinge on the price of
oil and believes prices will remain weak through the end of this
year before bottoming and firming sometime in the first quarter
of 2016.
The materials group was the lone gainer among the index's
top 10 sectors, rising 1.2 percent as gold miners in particular
were burnished by bullion prices that hit their highest level in
five weeks on safe-haven buying. GOL/
Barrick Gold Corp ABX.TO surged 6.2 percent to C$10.98
while Goldcorp Inc G.TO climbed 2.7 percent to C$20.39.
The always volatile Valeant stock of Valeant Pharmaceuticals (NYSE:VRX)
International Inc VRX.TO tumbled 3.4 percent to C$309.29 after
the company said it would buy Sprout Pharmaceuticals, maker of
the first approved treatment for low sexual desire in women, for
about $1 billion plus milestone payments.