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

Tue Apr 14, 2009 5:23pm EDT
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* Three-day TSX rally halted

* Seven of TSX's 10 groups up, but energy drops 2.1 pct

* U.S. bank earnings may set direction for rest of week (Adds comment, details)

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 its 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 after three straight sessions of higher closes. The index hit 9,330.61 during the day, its highest level since Jan. 7.   Continued...