April 20, 2009 / 2:08 PM / 8 years ago

CANADA STOCKS-TSX down 2.4 percent as energy and banks weigh

2 Min Read

* TSX down 230.77 points at 9,206.88

* Energy and financial shares headline fall

* TSX coming off sixth straight week of gains (Adds details and comments)

By Frank Pingue

TORONTO, April 20 (Reuters) - Toronto's main stock index was sharply lower on Monday morning as falling oil prices pulled down its energy sector, while concerns about the health of U.S. corporate earnings weighed on investor sentiment.

The energy group was rattled as the price of oil fell more than 5 percent, while the heavyweight financial sector dropped after Bank of America (BAC.N) reported a profit that relied heavily on one-time items. [ID:nN20380236]

Shares of Suncor Energy (SU.TO) were down 7.3 percent at C$29.00, while Canadian Natural Resources (CNQ.TO) was off 6 percent at C$53.95.

"Just a general bad tone prior to the open ... oil is off based on the U.S. influence and the concern about the global economy," said Paul Taylor, chief investment officer at BMO Harris Investment Management Inc.

"And banks are off on Bank of America. Their earnings were not as strong as the market had expected and so some people believe Canadian banks have gone too far too quickly."

Toronto-Dominion Bank (TD.TO) shares dropped 4.4 percent to C$47.52, while Royal Bank of Canada (RY.TO) shed 2.9 percent to C$41.90.

At 9:55 a.m. (1355 GMT), the S&P/TSX composite index .GSPTSE was down 230.77 points, or 2.45 percent, at 9,206.88. It has recorded six straight weeks of gains since falling to a five-year low in early March.

Eight of the TSX's 10 sectors were lower, led by a 5 percent drop in the energy group and a 3.5 percent skid among financials.

$1=$1.23 Canadian Editing by Peter Galloway

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