CANADA STOCKS-TSX hit by soft earnings, oil price drop

Wed Oct 28, 2009 10:13am EDT
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 * TSX down 84.75 points at 11,968.79
 * Lower oil prices rattle energy stocks
 * Soft corporate earnings play role
 (Adds details and comments)
 By Frank Pingue
 TORONTO, Oct 28 (Reuters) - Toronto's main stock index was
lower on Wednesday morning, hit by soft corporate earnings and
by a drop in oil prices that shook EnCana Corp (ECA.TO: Quote) and its
energy peers, extending a recent slide in the oil and gas
 Suncor Energy (SU.TO: Quote) shares fell 1 percent to C$36.57,
while EnCana followed with a drop of 1.4 percent to C$61.37.
 The energy sector has fallen in the past three sessions.
Oil prices dropped to $79 a barrel on Wednesday after hitting a
one-year high last week of $82 a barrel [O/R].
 The lower start to the TSX followed weakness in equities
overnight and came as a number of companies reported soft
earnings for the latest quarter.
 Shares of Nexen Inc NXY.TO dropped 1.3 percent to C$23.67
after Canada's fourth-largest independent oil explorer said its
third-quarter profit fell 86 percent. [ID:nBNG449399]
 Open Text Corp OTC.TO shares tumbled 5 percent to C$40.31
after the business software maker posted an 88 percent drop in
quarterly profit. [ID:nN27263987]
 "It really just seems to be a continuation of a good
three-day selloff," said Francis Campeau, broker at MF Global
Canada in Montreal. "It seems a bit overdone on the sell side
... but guys are still taking risk off the table."
 At 9:55 a.m. (1355 GMT), the S&P/TSX composite index
.GSPTSE was down 84.75 points, or 0.77 percent, at
 ($1=$1.07 Canadian)
 (Editing by Peter Galloway)