CANADA STOCKS-TSX falls as energy shares stumble

Tue Apr 14, 2009 10:07am EDT
 
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* TSX down 37.98 points at 9,247.64

* Energy sector off 1.6 pct, leads way down (Adds details and comments)

By Frank Pingue

TORONTO, April 14 (Reuters) - Toronto's main stock index was lower on Tuesday morning as the price of oil fell and sent energy shares tumbling, with much of the rest of the index following along.

Oil is a key Canadian export its price often dictates direction for the TSX index's energy sector, which shed 1.6 percent in early action.

Shares of EnCana (ECA.TO: Quote), Canada's biggest energy company, fell 2.6 percent to C$54.79, while Canadian Natural Resources (CNQ.TO: Quote) dropped 1.4 percent to C$54.53.

The lower start in Toronto came alongside a skid in U.S. equities, but did not spur much concern among market watchers. The TSX has rallied sharply since hitting a multi-year low in early March.

"Part of this is just profit-taking, especially in Toronto, because we've had a strong market for the past four or five weeks," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

"But the trend seems to be start lower and gradually work back up ... it seems to be a buy on dips mentality, which makes sense because people don't want to charge in there because the market has gone up a lot."   Continued...