CANADA STOCKS-TSX lower as CNR, metals, industrials drop

Wed Jan 27, 2010 10:46am EST
 
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By Claire Sibonney

TORONTO Jan 27 (Reuters) - Toronto's main stock index fell on Wednesday with the heavily weighted materials and industrial sectors dragged down by concerns about the prospect of credit tightening around the world.

Shares of Teck Resources TCKb.TO, down C$2.27 at C$36.43, led the index's decliners as metal prices dropped over worries about China. [MET/L]

Canadian National Railway (CNR.TO: Quote) also fell 0.97 percent to C$55.14, despite the company reporting on Tuesday it is aiming for 10 percent earnings growth and raising its dividend. [ID:nN25105294]

Investors had been looking for more signs of revenue growth as opposed to strictly cost cutting to boost the bottom line, said Paul Gardner, partner and portfolio manager at Avenue Investment Management.

Gardner added that CN, which ships commodities and grains to China, will also be pressured by the concerns over demand from the world's fastest growing major economy.

At 10:14 a.m. (1514 GMT) the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 64.02 points, or 0.56 percent, at 11,297.17. (Editing by Jeffrey Hodgson)