Toronto stocks lower on weak financials

Fri Sep 12, 2008 9:47am EDT
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TORONTO, Sept 12 (Reuters) - The Toronto Stock Exchange's main index opened lower on Friday, as weakness in financials on concerns over troubled Lehman Brothers Holdings Inc LEH.N overcame strength in resource stocks.

Shortly after the open, the S&P/TSX composite index .GSPTSE was down 25.50 points or 0.2 percent, at 12,587.26, snapping a two day win streak. Seven of its 10 main groups were lower.

Financials slipped 1.9 percent with Canadian Imperial Bank of Commerce CM.TO down 1.7 percent at C$63.13.

Investors were cautious as they awaited the fate of Lehman Brothers after a tumble in its stock put its survival in question. For details, see [ID:nSP6809].

Concerns heightened after Lehman reported a big quarterly loss and failed to attract investors to shore up its capital position.

The heavily weighted energy sector rose 1.2 percent as crude firmed to around $102 a barrel on concerns Hurricane Ike could threaten U.S. oil refineries. Husky Energy Inc HSE.TO rose 2.1 percent to C$42.99.

It and several other companies won development rights to spend a total of C$186 million in exploration offshore Labrador, the Canada-Newfoundland and Labrador Offshore Petroleum Board said.

Materials, home to resource shares, rose 3 percent on stronger gold and base metals. First Quantum Minerals FM.TO rose 8.4 percent to C$53.16, while Potash Corp of Saskatchewan Inc POT.TO climbed 3.1 percent to C$167.09. ($1=$1.06 Canadian) (Reporting by Jennifer Kwan; editing by Janet Guttsman)