(New throughout, updates prices and market activity, adds
comment from portfolio manager)
* TSX ends down 184.87 points, or 1.3 percent, at 14,001.37
* All but one of 10 main groups fall; Valeant boosts health
stocks
By Alastair Sharp
TORONTO, July 27 (Reuters) - Canada's main stock index fell
sharply on Monday, hitting its lowest level since January, in a
broad retreat as heavyweight resource-based companies dipped on
lower commodity prices and the latest plunge in Chinese
equities.
The 1.3 percent drop was the seventh straight session of
losses for the Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE , and its first day trading below 14,000 since January.
"There is a 'Sell Canada' theme going on," said Diana
Avigdor, portfolio manager and head of trading at Barometer
Capital Management. "At some point we're going to have a
respite, but that's not an investment thesis."
Five of the six most influential weights were financial
stocks, which overall lost 1.5 percent. Toronto-Dominion Bank
TD.TO fell 1.7 percent to C$50.99 and Royal Bank of Canada
RY.TO declined 1.4 percent to C$73.52.
The index lost 184.87 points to close at 14,001.37, with the
energy group falling 2.8 percent and materials names shedding
3.1 percent. It fell as low as 13,956.05 during the session, a
level last seen on Jan. 14.
Some one-fifth of Canada's index sells raw materials or
energy products, and investors fret that China's transition to a
more consumer-focused and slower-growth economy will plague
their prospects.
"I'm somewhat kind of pessimistic on China. I certainly
don't see a crash imminent, but the economy is slower than I
would've thought," said John Johnston, chief strategist at
Davis-Rea. He said a global recession could be unfolding.
Chinese stocks slumped the most in eight years, sending
commodity prices falling. O/R
Among oil and gas companies, Canadian Natural Resources Ltd
CNQ.TO slid 1.6 percent to C$30.20, while Suncor Energy Inc
SU.TO retreated 1.1 percent to C$32.72 and Encana Corp
ECA.TO lost 5.8 percent to C$9.67.
Of the index's 10 main sectors, only healthcare notched a
gain, thanks to a 3.3 percent gain in Valeant Pharmaceuticals (NYSE:VRX)
VRX.TO , the index's largest company by market capitalization.
Declining shares outnumbered advancers by a more than
13-to-1 margin and 57 companies hit fresh 52-week lows.
Restaurant Brand International QSR.TO , formed out of
Burger King's takeover of Canadian coffee and doughnut chain Tim
Hortons, was among the few gainers. Its shares rose 3.9 percent
to C$54.21, after its earnings cheers investors. ID:nL3N10740Y