CANADA STOCKS-TSX drops as resources weigh

Tue Oct 27, 2009 10:31am EDT
 
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 * TSX down 93.06 points at 11,141.82
 * Gold-mining and energy stocks headline selloff
 (Adds details and comments)
 By Frank Pingue
 TORONTO, Oct 27 (Reuters) - Toronto's main stock index was
lower on Tuesday morning as shares of miner Kinross Gold (K.TO: Quote)
dropped after the company trimmed its production outlook.
 Kinross shares, the biggest drag on the index, were down 4
percent at C$20.74 after the company lowered its full-year 2009
production outlook and raised its estimate for average cost of
sales. [ID:nN27230566]
 Other gold miners joined the selloff, with Goldcorp (G.TO: Quote)
shares off 1.4 percent at C$40.40, and Yamana Gold (YRI.TO: Quote)
dropping 2 percent to C$11.79.
 "The U.S. dollar has been in a free-fall so you're getting
the inevitable (US$) bounce, and that's sort of giving cause to
some profit-taking in the commodities, which had such a great
run," said John Ing, president of Maison Placements Canada.
 "Commodities were very much overbought, but my expectation
is that as we go into the month-end we will probably get a
rally toward the end of the week."
 Investors were also booking profits on weighty energy
stocks, opting to ignore a rally in oil prices after three
straight days of decline.
 Shares of Suncor Energy (SU.TO: Quote) were 1.5 percent lower at
C$37.05, while Canadian Natural Resources (CNQ.TO: Quote) dropped 1.5
percent to C$72.33.
 At 10:20 a.m. (1420 GMT), the S&P/TSX composite index
.GSPTSE was down 93.06 points, or 0.83 percent, at
11,141.82.
 ($1=$1.07 Canadian)
 (Editing by Peter Galloway)