(Adds market developments, analyst's comments)
* TSX falls 157.24 points, or 1.11 percent, to 14,036.63
* Seven of the TSX's 10 main groups end lower
By Alastair Sharp
TORONTO, Aug 19 (Reuters) - A capitulation in heavyweight
energy stocks pummeled Canada's main stock index on Wednesday,
pushing it down 1.1 percent as crude oil prices plumbed new
depths after a shock rise in U.S. stockpiles.
The energy group sank 4.3 percent, knocking it to its lowest
since August 2004, in line with a similar fall in the commodity
after the U.S. inventories numbers reinforced concerns about a
global supply glut. O/R
"There's quite a bit of panic in the energy sector right
now," said Youssef Zohny, portfolio manager at StennerZohny
Investment Partners+ of Richardson GMP Ltd.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended down 157.24 points, at 14,036.63. There were
three decliners for every advancing stock.
Canadian Natural Resources Ltd CNQ.TO , the country's
largest independent petroleum producer, lost 5.6 percent to
C$28.30 and Suncor Energy Inc SU.TO , Canada's largest oil and
gas company, fell 3.2 percent to C$35.16.
Ten smaller operators gave up between 7 and 15 percent of
their market value.
Zohny said that for investors with a three-to-five-year
horizon, some names could be considered buying opportunities at
these levels.
"There's quite a bit of bad news priced into the sector and
there could still be some short-term pain, but it's definitely
starting to look more attractive," he said.
A slip in the influential financials group also contributed
to the index's slide, its eighth in 10 sessions.
The financials are being tested by a combination of factors,
said Philip Petursson from the portfolio advisory group at
Manulife Asset Management, including banks' ties to
commodities-related companies and the low interest-rate
environment.
The group fell 0.7 percent, with Bank of Nova Scotia
BNS.TO down 1.2 percent to C$59.88 and Toronto-Dominion Bank
TD.TO giving up 0.7 percent to C$51.93.
Investors will be closely watching bank earnings next week,
Richardson GMP's Zohny said, and negative reports could push the
index below 14,000.
Gold miners featured heavily among the most influential
gainers, propped up by higher prices for the safe-haven precious
metal. GOL/
Goldcorp Inc G.TO rose 2.9 percent to C$19.85 and Barrick
Gold Corp ABX.TO added 3.7 percent to C$10.34.
($1=$1.32 Canadian)