(Adds portfolio manager quote and details on central bank
policy, updates prices)
* TSX ends down 263.26 points, or 1.78 percent, at 14,540.00
* All of the TSX's 10 main groups fall
By Fergal Smith
TORONTO, Sept 9 Canada's main stock index
suffered its biggest loss since February on Friday, slumping to
a five-week low as higher bond yields in major economies
pressured global stock and commodity markets.
Higher bond yields came after the European Central Bank on
Thursday kept its policy stance unchanged and after comments by
Federal Reserve officials that hinted at a U.S. interest rate
hike, while the Bank of Japan is studying several options to
steepen its yield curve.
The perception that major central banks are reluctant to use
more monetary stimulus to depress bond yields has reduced
liquidity in global markets and triggered higher volatility,
said Matt Skipp, president of SW8 Asset Management.
North Korea conducted its fifth and biggest nuclear test on
Friday, adding to risk aversion.
Global developments overshadowed stronger-than-expected
domestic jobs data. Canada's economy added 26,200 jobs in
August, recovering some of the positions lost in recent months.
The Toronto Stock Exchange's S&P/TSX composite index
closed down 263.26 points, or 1.78 percent, at
14,540.00. All of the index's 10 major groups ended lower.
For the week, the index fell 1.7 percent.
U.S. crude oil futures settled $1.74 lower at $45.88 a
barrel as traders noted that a tropical storm was behind this
week's unexpected slump in U.S. crude inventories.
The energy sector tumbled 3 percent, including a 10.4
percent drop in the shares of Crescent Point Energy Corp
to C$18.15. The company announced a plan to raise C$650
million by issuing more shares and a C$600 million hike in its
capital spending plans.
Pipeline company Enbridge Inc pulled back 1.7
percent to C$58.11 following days of sharp gains after
announcing a major takeover.
The materials group, which includes precious and base metals
miners and fertilizer companies, dropped 3.6 percent.
Barrick Gold lost 4 percent to C$22.88, while
Goldcorp Inc declined 2.9 percent to C$20.76. Goldcorp
has hired Bank of Nova Scotia to help it sell a gold and silver
mine in Mexico, sources said.
Spot gold fell 0.8 percent.
Industrials declined 2.6 percent, including losses for
railroad stocks, while financials dipped 0.4 percent.
Gains for life insurance companies helped restrain losses
for financials, including a 1.3 percent gain for Manulife
Financial Corp to C$18.16.
The CEO of the country's biggest life insurer said on
Thursday that Manulife would consider share buybacks and
expected a pause in acquisitions.
(Additional reporting by Alastair Sharp; Editing by Nick
Zieminski and Cynthia Osterman)