CANADA STOCKS-TSX drops as China data hits bank, energy stocks

    * TSX falls 17.28 points, or 0.12 percent, to 13,970.92 
    * Nine of the 10 main index sectors decline 
    * RBC has biggest negative influence on index 
 
    By John Tilak 
    TORONTO, Jan 23 (Reuters) - Canada's main stock index 
dropped on Thursday after sluggish manufacturing data from China 
disappointed the market and dragged on shares of financial and 
energy companies. 
    A big jump in gold-mining shares, buoyed by a 1.4 percent 
gain in the price of bullion, failed to arrest the slide. 
    Data showed that activity in China's factory sector dropped 
in January for the first time in six months. China's Flash 
Markit/HSBC purchasing managers index fell to a 49.6 reading in 
January from December's 50.5.    
    "It's quite discouraging to see the flash PMI back under 
50," said Colin Cieszynski, senior market analyst at CMC Markets 
Canada, who sees a market correction taking place. 
    "Not only is China not rebounding, but it looks like it may 
continue to struggle for some time into this year," he added. 
    The Toronto Stock Exchange's S&P/TSX composite index 
   was down 17.28 points, or 0.12 percent, at 13,970.92. 
    Nine of the 10 main sectors on the index were in the red. 
    Financials, the index's most heavily weighted sector, gave 
back 0.8 percent. Royal Bank of Canada    slipped 1.2 
percent to C$71.67 and had the biggest negative influence on the 
index. Bank of Nova Scotia    lost 0.8 percent to C$64.10. 
    Energy shares stumbled 0.1 percent, with Enbridge Inc 
   shedding 0.2 percent to C$47.15. 
    Shares of gold producers advanced 4.1 percent. Barrick Gold 
Corp    added 4.3 percent to C$21.71, and Goldcorp Inc 
   rose 4.5 percent to C$26.77. 
    ($1=$1.11 Canadian) 
 
 (Editing by Peter Galloway) 
 ((john.tilak@thomsonreuters.com)(1-416-687-7918)(Reuters 
Messaging: john.tilak.reuters.com@reuters.net)) 
  
((============================================================== 
FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS:    
TSX market report........................................ .TO   
Canadian dollar and bonds report................... CAD/  CA/   
Reuters global stocks poll (Canada)...    EPOLL/CA   
Top News: Canada .................................... TOP/CAN   
FOR CANADIAN MARKETS DATA.............................   )) 
 
Keywords: MARKETS CANADA/STOCKS