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CANADA STOCKS-TSX slumps 2 pct as oil price weakness, U.S. data weighs

Published 2016-01-15, 05:20 p/m
CANADA STOCKS-TSX slumps 2 pct as oil price weakness, U.S. data weighs
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* TSX ends down 262.57 points, or 2.13 percent, at 12,073.46
* All 10 of the TSX's main groups fall

By Alastair Sharp
TORONTO, Jan 15 (Reuters) - Canada's main stock index fell
more than 2 percent on Friday as a further slide in crude oil
prices weighed heavily on energy shares, while jitters about
domestic and global economic growth hit banks and industrial and
consumer names.
The index dropped 3 percent for the week, its third straight
weekly loss of more than 2.2 percent. It is at its weakest level
since mid-2013 as a gloomy outlook sparks an investor retreat.
"A lot of that is some of the stress coming out of China,
but I also think more and more people are questioning U.S.
growth," said Michael Greenberg, a portfolio manager for
Franklin Templeton Solutions.
U.S. retail sales fell in December as unseasonably warm
weather curbed purchases of winter apparel and cheaper gasoline
weighed on receipts at service stations.
U.S. producer prices were also lower last month due to weak
energy costs, while the country's industrial output declined for
a third straight month.
Crude prices settled below $30 a barrel for the first time
in 12 years as traders braced for an imminent rise in Iran's
exports. O/R
The most influential weights on the Canadian index included
some of its biggest energy stocks, with Canadian Natural
Resources CNQ.TO losing 5.6 percent to C$24.44 and Suncor
Energy Inc SU.TO down 3.6 percent to C$31.22.
The country's two biggest banks both fell 3.6 percent, with
Royal Bank of Canada RY.TO at C$67.05 and Toronto-Dominion
Bank TD.TO at C$49.45.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended down 262.57 points, or 2.13 percent, at
12,073.46.
The losses were broad: Every sector was in the red and most
were off at least 1.5 percent. The energy group retreated 3.6
percent, and financials lost 2.9 percent.
TransAlta Corp TA.TO slumped 13.8 percent to C$3.76 after
the power generation company slashed its dividend to fund its
transition away from coal. The utilities group, of
which TransAlta is a part, fell 2.4 percent.
The materials group, which includes precious and base metal
miners and fertilizer companies, was barely lower, helped by
gains for gold miners, as bullion climbed nearly 2 percent.
GOL/
Barrick Gold Corp ABX.TO rose 5.4 percent to C$11.49, and
Detour Gold Corp DGC.TO jumped 6 percent to C$16.25 after
announcing results late on Thursday.
Greenberg said that if bets on a string of U.S. Federal
Reserve rate hikes this year start to look overly optimistic,
gold miners could make further gains.

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