(Adds analyst comment, details, market reactions)
* TSX down 46.43 points, or 0.34 percent at 13,435.47
* Six of the TSX's 10 main groups were up
By Solarina Ho
TORONTO, Sept 2 (Reuters) - Canada's main stock index
seesawed on Wednesday in extremely choppy trading as energy
stocks beset by volatile crude oil prices capped gains in other
sectors.
The index gyrated between positive and negative territory
throughout the morning after initially rallying more than 1
percent on China's latest effort to soothe investors' anxiety.
Markets are concerned about the country's slowing growth and
what that means for the global economy.
"Volatility continues to rule the day, both to the upside
and the downside," said Craig Fehr, Canadian market strategist
at Edward Jones in St. Louis. " ... It partly reflects markets
trying to digest what the bigger trend is in China."
"On-the-fly" policy reactions out of Beijing are
contributing to the dramatic daily swings, Fehr added.
The focus on China, the fluctuation in commodity prices and
uncertainty around the U.S. Federal Reserve's decision on
interest rates will keep markets on edge, he said.
Fundamentals, including growth in Canada, the United States
and Europe were bright spots, however.
"As we look out a little bit further, I think the backdrop
is set for equity markets ... to inch higher," Fehr said.
At 12:06 p.m. EDT (1606 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 46.43 points, or 0.34
percent, at 13,435.47 after touching a session high of
13,553.31.
Of the index's 10 main groups, six were positive.
But energy stocks gave up 2.2 percent, hurt by U.S. crude
prices that swung between gains of 2 percent and losses of
nearly 4 percent. O/R
Seventeen of the top 20 biggest drags on the index were oil
and gas companies. Suncor Energy Inc SU.TO fell 1.8 percent to
C$35.11, followed by Canadian Natural Resources CNQ.TO , which
declined 1.6 percent to C$27.90. MEG Energy Corp MEG.TO
plunged 9.7 percent to C$9.65.
Materials, home to mining companies, retreated 0.4 percent.
Offsetting declines was a 1.9 percent advance to C$301.81 by
the influential Valeant Pharmaceuticals International Inc (NYSE:VRX)
VRX.TO . The overall healthcare group was up 3.6 percent.
Alimentation Couche-Tard ATDb.TO , which reported robust
U.S. growth on Tuesday, rallied 4.1 percent to C$59.04.
Fehr said the market's recent declines made for a good
buying opportunity for investors, but those eyeing energy or
materials stocks needed to be patient.
Declining issues outnumbered advancing ones on the TSX by
163 to 80, for a 2.04-to-1 ratio on the downside.