3 Min Read
* Energy shares slide as crude retreats
* TSX index adds to last week's 1.8 percent fall
* Moves could be muted with U.S. markets shut for holiday (Adds details)
By Frank Pingue
TORONTO, Jan 19 (Reuters) - Toronto's main stock index was pinned lower at midmorning on Monday as financial issues fell on concerns about the British and U.S. banking sectors, while a drop in oil prices rattled energy shares.
The energy and financial sectors, which together make up about half of the TSX led the decline with slides of 1.8 percent and 1.6 percent respectively.
At 11:00 a.m. (1600 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 50.96 points, or 0.57 percent, at 8,869.44. Earlier it had fallen to 8,807.73, for drop of 112 points.
Five of the TSX's 10 sectors were lower.
Volume is expected to be light throughout the session and could result in exaggerated moves, with U.S. markets closed for Martin Luther King Jr. Day.
"Obviously it's a quiet day with New York closed," said Bruce Latimer, trader at Dundee Securities. "But you've got oil down and you've got some banking issues in the United Kingdom that have spilled over into our market."
The financial sector's latest retreat followed news that Britain has launched a multibillion-pound rescue plan for its banks. [ID:nLJ676404] Nagging concerns about the troubled U.S. banking industry also weighed on sentiment.
A fall in oil prices below $35 a barrel was behind the energy sector's retreat. The slide by crude was largely due to signs of a resolution in the gas row between Russia and Ukraine and the ceasefire between Israel and Hamas in Gaza that eased supply concerns.
Latimer said he expects the TSX index to drift throughout the session with little impetus for investors to do make major moves.
$1=$1.26 Canadian Reporting by Frank Pingue; editing by Rob Wilson