CANADA STOCKS-Banks lead TSX lower, oil sole sector higher

Tue Oct 13, 2009 11:11am EDT
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 * TSX down 0.97 percent at 11,325.62
 * Banks and insurers pull index down
 * Oil and gas only sector to rise
 * U.S. earnings in view
 (Adds details)
 TORONTO, Oct 13 (Reuters) - Toronto's main stock index fell
on Tuesday morning, led lower by Royal Bank of Canada RY.TO
and other banks as they tracked weakness in U.S. financial
 Financials, which make up about a third of the index's
weighting, fell more than 1 percent, under pressure after
prominent U.S. banking analyst Meredith Whitney downgraded her
rating on Goldman Sachs Group GS.N to "neutral" from "buy".
 Royal, Canada's biggest bank, topped all decliners, falling
1.6 percent to C$55.06, followed by Bank of Nova Scotia
BNS.TO, down 1.6 percent at C$46.52. Insurer Manulife
MFC.TO lost 2 percent to C$22.09. Six big financial companies
were among the top 10 notable decliners.
 "Canadian financials are following the U.S. lead even
though there is a pretty big disconnect between the banks in
Canada and the banks in the U.S., but they still will follow to
some degree," Steve Ibel, institutional equities trader at
Beacon Securities, in Halifax, Nova Scotia.
 At 10:42 a.m. (1442 GMT), the S&P/TSX composite index
.GSPTSE was down 111.30 points, or 0.97 percent, at
11,325.62. Nine of its 10 sectors were lower.
 The oil and gas sector was the lone index group to rise,
helped by a fourth straight session of higher oil prices, which
took crude towards $74 a barrel. Canadian Natural Resources
CNQ.TO led all heavyweight advancers, up 1.1 percent at
 Concern about a heavy slate of upcoming U.S. earnings
reports also persuaded some investors to pocket gains after the
index's 4.4 percent gain last week.
 U.S. stocks fell on Tuesday as Johnson & Johnson's
third-quarter sales figures disappointed investors.
 ($1=$1.03 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)