CANADA STOCKS-TSX pulled lower by oil, resources

Wed Nov 12, 2008 10:09am EST
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* Oil falls below $58, drags down energy sector

* Teck Cominco down 7.7 pct, extends Tuesday's decline

TORONTO Nov 12 (Reuters) - The Toronto Stock Exchange's main index .GSPTSE fell 1.6 percent on Wednesday morning with energy and materials issues pulled down by weakness in commodities as the price of oil dropped to a 20-month low.

The index's oil and gas sector fell 2.6 percent as oil slipped to below $58 a barrel before paring some of its losses after hints OPEC might consider another cut in oil production. [ID:nN12268292]

Heavily-weighted oil issue EnCana Corp ECA.TO fell 3.4 percent to C$55, while Suncor SU.TO was off 4.2 percent at C$25.44.

Materials were also dragged 2.6 percent lower as gold, copper and aluminum were all softer. Teck Cominco TCKb.TO was down 7.7 percent at C$8.08, extending Tuesday's 20.1 percent loss, and was the most heavily-exchanged issue.

The diversified miner said shortly before markets closed on Tuesday that it it does not plan to issue equity to pay off debt incurred in its takeover of Fording Canadian Coal Trust. [ID:nN11538747]

At 9:55 a.m. (1455 GMT), the S&P/TSX composite index .GSPTSE was down 154.07 points, or 1.63 percent, at 9,269.93. Eight of the index's 10 main groups were lower. ($1=$1.22 Canadian) (Reporting by Ka Yan Ng; Editing by Peter Galloway)