Toronto stocks open lower as resources weigh

Tue Sep 9, 2008 9:53am EDT
 
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TORONTO, Sept 9 (Reuters) - The Toronto Stock Exchange's main index opened lower on Tuesday, as worries over slowing growth hit resource stocks, offsetting a rise in financial issues which climbed on the lingering euphoria from the U.S. bailout plan.

Shortly after the open, the S&P/TSX composite index .GSPTSE was down 50.63 points, or 0.4 percent, at 12,584.01, with eight of its 10 main groups lower.

Energy stocks sank 1.7 percent as the price of crude oil slipped, despite the threat of Hurricane Ike to the U.S. Gulf energy infrastructure, on expectations that OPEC will not cut output. Canadian Natural Resources CNQ.TO sank 2.2 percent to C$78.18.

Materials, home to resource shares, dropped 3.7 percent, as gold and base metals sagged on a firmer U.S. dollar and demand fears. Potash Corp of Saskatchewan POT.TO slipped 4.7 percent to C$154.80, while mid-tier gold miner Agnico-Eagle AEM.TO sank 5 percent to C$48.70.

Financial shares extended gains, rising 1.5 percent, after the U.S. government took control of mortgage finance firms Fannie Mae FNM.N and Freddie Mac FRE.N earlier this week. Toronto-Dominion Bank TD.TO rose 1.7 percent to C$63.40. ($1=$1.1.06 Canadian) (Reporting by Jennifer Kwan; Editing by Scott Anderson)