October 27, 2009 / 2:34 PM / 8 years ago

CANADA STOCKS-TSX drops as resources weigh

 * 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) 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) shares off 1.4 percent at C$40.40, and Yamana Gold (YRI.TO) 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) were 1.5 percent lower at C$37.05, while Canadian Natural Resources (CNQ.TO) 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)                                      

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