CANADA STOCKS-TSX falls on oil's drop as market restarts

Thu Dec 18, 2008 10:27am EST
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*Toronto, TSX Venture exchanges open after Wednesday halt

*TMX Group shares sink 3.2 percent after outage

*Energy leads TSX lower as oil falls below $40 a barrel (Adds quotes, details)

TORONTO Dec 18 (Reuters) - Toronto's main stock index fell on Thursday morning, led lower by energy stocks as the price of oil tumbled, with trading restarting after the Toronto Stock Exchange was shut down Wednesday due to a technical glitch.

Heavily weighted stocks that led the market lower included oil company EnCana Corp ECA.TO, down 4.2 percent at C$54.70, and miner Goldcorp Inc G.TO, which was down 9 percent at C$35.81.

All eyes were on the market's operations as the outage on Wednesday frustrated users and sent business to rival marketplaces.

Shares of TMX Group Inc X.TO, which operates the exchange, sank 3.2 percent to C$23.81.

Cormark Securities analyst Jeff Fenwick, who maintains a buy recommendation with a price target of C$45.50, said the glitch made for bad headlines and brokerages lost trading commissions for the day.

But the technical problem shouldn't hurt the company in the long run, he said.   Continued...