(Adds portfolio manager quotes, details; updates prices)
* TSX ends down 203.49 points, or 1.64 percent, at 12,170.41
* Eight of the TSX's 10 main groups fall
By Fergal Smith
TORONTO, Jan 13 (Reuters) - Canada's main stock index
slumped on Wednesday to a 2-1/2-year low as investors used an
early rally to reduce exposure to stocks and crude oil prices
fluctuated on rising U.S. inventories.
The index had climbed initially after positive Chinese trade
data supported sentiment.
"People don't want stocks these days and they're taking
every opportunity to sell them," said John Kinsey, portfolio
manager at Caldwell Securities.
Heavyweight financial stocks fell 2.1 percent, including a
2.5 percent drop in Royal Bank of Canada RY.TO to C$69.15.
Financials are "taking a good hit" amid concern that the
impact of the oil price shock will get worse for the banks in
2016, according to Kinsey.
Enbridge Inc ENB.TO dropped 3.8 percent to C$42.82, while
Suncor Energy Inc SU.TO was down 3.4 percent at C$31.33. The
overall energy group fell 1.9 percent.
Brent crude fell below $30 a barrel for the first time since
April 2004 as growing inventories of oil in the United States
stoked market fears about demand.
Bombardier Inc BBDb.TO fell 4.1 percent to C$1.17. The
company said it was ending a decades-long tie-up with a partner
in the Middle East for business jets sales and separately
canceling two dozen firm orders for its larger Global business
jets.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 203.49 points, or 1.64 percent, to
12,170.41. Eight of the index's 10 main groups were in negative
territory.
Railway stocks were also a drag, including a 2.7 percent
drop in Canadian National Railway Co CNR.TO to C$72.90.
Among the gainers, Shaw Communications Inc SJRb.TO rose
5.3 percent to C$24.70. The company said it would sell its media
unit to Corus Entertainment Inc CJRb.TO for C$2.65 billion
($1.9 billion), gaining funding for its Wind Mobile purchase.
Magna International Inc MG.TO rose 2.3 percent to C$51.69
after the company said it expected sales in its auto parts
manufacturing business to rise about 15.7 percent this year.
The materials group rose 0.2 percent as mining stocks
benefited from safe-haven demand for gold.
Spot gold XAU= was up 0.6 percent at $1,093.25.