(New throughout, updates prices and market activity, adds
comments from portfolio manager, details on Encana )
* TSX ends down 72.55 points, or 0.54 percent, to 13,311.05
* Six of the TSX's 10 main groups were lower
By Fergal Smith
TORONTO, March 8 (Reuters) - Canada's main stock index broke
an eight session winning streak on Tuesday as lower commodity
prices and weak Chinese data weighed on resource stocks, but
financials and defensive stocks rose and the index still held
near three-month highs.
The energy group retreated 3.0 percent, while the materials
group, which includes precious and base metals miners and
fertilizer companies, lost 2.5 percent.
Commodity related stocks succumbed to profit taking after
recent sharp gains, said Kevin Headland, director of capital
markets and strategy at Manulife Asset Management.
Strength in those sectors has helped lift the index more
than 15 percent since it hit an almost 3-1/2-year low in
January.
The Bank of Canada monetary policy decision on Wednesday
encouraged a "wait and see" approach, Headland added.
The most influential movers on the index included Canadian
Natural Resources Ltd CNQ.TO , which fell 3.3 percent to
C$33.56, and Encana Corporation ECA.TO , which declined more
than 13 percent to C$6.99.
Encana is exploring the sale of more non-core assets in the
United States and Canada, two sources familiar with the matter
said.
Oil prices fell as Goldman Sachs (NYSE:GS) suggested the rally was
unsustainable and an industry group said U.S. stockpiles swelled
to record highs again last week. O/R
U.S. crude CLc1 prices settled at $36.50 a barrel, down
3.69 percent. Copper retreated further from last week's
four-month highs and gold XAU= dipped 0.5 percent, hovering
just below 13-month high. MET/L GOL/
First Quantum Minerals Ltd FM.TO tumbled more than 16
percent to C$6.12, while Barrick Gold Corp ABX.TO was down 3.2
percent at C$17.86.
Far worse than expected Chinese trade data stoked concerns
about the health of the global economy, although the data was
affected by the timing of the Lunar New Year holidays.
China is a major consumer of raw materials, among them
Canadian.
However, fears of a "hard landing" in China were played down
by Headland, who pointed to an improving domestic economy.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE fell 72.55 points, or 0.54 percent, to 13,311.05. Six
of the index's 10 main groups were in negative territory.
Consumer staples rose 1.1 percent and telecommunication
stocks advanced 1.2 percent as defensive sectors outperformed.
Bce Inc BCE.TO rose 1.5 percent to C$58.44, while Loblaw
Companies Ltd L.TO was up 1.2 percent at C$71.90.
The financials group rose 0.6 percent, including a 1.2
percent advance in the shares of Bank of Nova Scotia BNS.TO to
C$61.23.