(Adds analyst comment, details on China, market reaction)
* TSX down 186.91 points, or 1.29 percent, at 14,279.48
* All 10 of the TSX's main groups drop
By Solarina Ho
TORONTO, Aug 11 (Reuters) - Canada's resource-laden main
stock index sank more than 1 percent on Tuesday, reversing the
previous session's bounce, as oil and mining stocks were hit by
a rout in commodity prices following China's unexpected move to
devalue its currency.
The People's Bank of China devalued the yuan by nearly 2
percent overnight in China's latest attempt to bolster its
economy following a string of poor economic data.
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Prices for copper and U.S. crude tumbled 4 percent or more,
with oil approaching multi-year lows and copper hitting six-year
lows on concern that the cheaper yuan will make importing
commodities more expensive for China, which is among the world's
top consumers of resources.
Energy stocks were down 2.8 percent, while materials, which
include miners, were down 1.3 percent.
Petroleum producer Canadian Natural Resources CNQ.TO fell
2.1 percent to C$32.45, while Suncor Energy Inc SU.TO declined
1.4 percent to C$37.17.
"China's probably going to have a 5 or 6 percent growth
rate. It's a managed economy. It's not your free enterprise
economy, and they will get their growth one way or another,"
said David Cockfield, managing director and portfolio manager at
Northland Wealth Management, who is not expecting any major
spillover effect.
"I just don't see a huge impact. It's too far away ... It's
probably wise on their part to do that if they want to keep
(their economic growth) at 5 or 6 percent."
Over the longer term, Dollarama Inc DOL.TO and other
retailers that import from China could profit from a cheaper
yuan.
At 11:52 a.m. EDT (1552 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 186.91 points, or
1.29 percent, at 14,279.48.
All 10 of the index's main sectors were in negative
territory. Declining issues outnumbered advancers by a 5.23-to-1
ratio.
Volatility will remain part of the current market pattern,
said Cockfield, who expressed overall optimism that economic
fundamentals are solid and that Canada will be helped by a
robust U.S. economy, even as oil continues to struggle.
Other top decliners included Toronto-Dominion Bank TD.TO ,
which fell 1.7 percent to C$52.37, and Royal Bank of Canada
RY.TO , which was down 1.6 percent a C$76.06. The financial
group was off 1.4 percent. The financial, energy and materials
groups together make up roughly a third of the index's weight.
Bucking the trend were gold miners, many of which benefited
from a safe-haven rebound in bullion prices following the yuan
move.
($1=$1.31 Canadian)