CANADA STOCKS-TSX falls on oil after hitting 3-month high

Tue Apr 14, 2009 4:48pm EDT
 
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* Seven of 10 groups up, but energy group drops 2.1 pct

* Decline follows five-week TSX rally (Adds comments and details; updates closing numbers)

By Ka Yan Ng

TORONTO, April 14 (Reuters) - Toronto's main stock index fell on Tuesday after hitting a three-month high earlier in the day as lower oil prices pulled down the heavily weighted energy sector.

Seven of the TSX's 10 subindexes posted small advances, but it was not enough to offset the 2.1 percent drag from the energy group. Industrials and telecoms both fell more than 1 percent.

Oil is a key Canadian export and its price often dictates direction for the TSX index's energy component. It slipped below $50 a barrel on Tuesday on demand and inventory forecasts. [ID:nSP458479]

Shares of EnCana (ECA.TO: Quote), Canada's biggest energy company, fell 3.2 percent to C$54.47 and were the biggest drag on the overall index. Suncor Energy (SU.TO: Quote) shares dropped 4 percent to C$30.70.

The S&P/TSX composite index .GSPTSE fell 54 points, or 0.58 percent, to finish at 9,231.62. The index had earlier reached 9,330.61, its highest level since Jan. 7.

The slide in the TSX did not spur much concern among market watchers as the index entered the session up 24 percent from the multi-year low hit in early March.   Continued...