* TSX down 94.46 points, or 0.74 percent, at 12,695.49
* Materials sector loses nearly 5 percent
By Fergal Smith
TORONTO, Dec 14 (Reuters) - Canada's main stock index fell
to its lowest in more than two years on Monday, notching deep
losses for mining stocks while energy shares weakened despite
crude oil prices rebounding from near-11-year lows.
The materials group tumbled just less than 5 percent, while
energy stocks retreated 1.7 percent.
The two resource-related groups, which together account for
more than a quarter of the index's weight, have been its worst
performers this year as oil and other commodity prices slumped.
The big picture for the market is that the commodities cycle
peaked about four years ago and is "now heading toward the
trough area," according to Keith G. Richards, portfolio manager
and technical analyst at ValueTrend Wealth Management.
Goldcorp Inc G.TO fell 7.7 percent to C$15.24, while
Barrick Gold Corp ABX.TO was down 8.9 percent at C$9.69 and
fertilizer producer Potash Corp POT.TO lost 3.4 percent to
C$23.02.
Encana Corp ECA.TO fell 8.2 percent to C$7.63 after the
oil and natural gas producer slashed its dividend and cut its
2016 capital budget. Suncor Energy Inc SU.TO
declined 1.9 percent to C$34.55.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE fell 94.46 points, or 0.74 percent, to 12,695.49,
having touched its lowest level since August 2013.
Seven of the index's 10 main groups ended the day in
negative territory.
Tax loss selling is still evident, according to Paul Hand,
managing director at RBC Capital Markets, referring to a typical
year-end practice by which investors try to reduce their capital
gains tax liability.
The upcoming Federal Reserve interest rate decision is the
main focus for the market, according to John Kinsey, portfolio
manager at Caldwell Securities.
The U.S. central bank is widely expected to hike on
Wednesday for the first time since June 2006.
Financials fell 0.5 percent, including a 0.7 percent drop in
Royal Bank of Canada RY.TO to C$72.45.
Telecoms climbed 1.1 percent, with BCE Inc BCE.TO rising
1.1 percent to C$54.58, and Telus Corp T.TO advancing 1.9
percent to C$39.82.
TransCanada Corp TRP.TO rallied 5.2 percent to C$46.37.
U.S. crude CLc1 prices settled at $36.31 a barrel, up 1.9
percent, after moving within a hair of 11-year lows.
Brent crude LCOc1 lost 0.4 percent to $37.78. O/R
Gold futures GCc1 fell 1.6 percent to $1,060 an ounce.
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