January 7, 2008 / 4:39 PM / 11 years ago

UPDATE 1-Toronto stocks drop on banks, oils

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TORONTO, Jan 7 (Reuters) - Toronto stocks were lower at midmorning on Monday, but up from a more than a 200-point fall earlier in the day as banking shares fell after market rumors of a writedown at another Canadian bank and energy shares declined after forecasts of a warmer-than-expected winter.

By midmorning, the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 146.37 points, or 1.1 percent, at 13,632.21 after racing as high as 13,839.65 just after the open and then dropping as low as 13,570.22.

This follows a fall of 199 points on Friday.

“This is symptomatic of a trendless, directionless market,” said Rick Hutcheon, president and chief operating officer at RKH Investments.

Overall, nine of the TSX index’s 10 main groups were lower led down by a 1.9 percent drop in the materials group, a 0.9 percent fall among heavily weighted financial shares and a 1.4 percent drop among energy issues.

The energy and financial groups account for about 60 percent of the overall index.

Energy shares slipped as the price for U.S. crude oil dropped 1.4 percent to $96.55 a barrel on forecasts of a warmer than expected winter that could bite into consumption of heating fuels.

Canadian Natural Resources (CNQ.TO) was down C$1.46 at C$73.05, and EnCana Corp (ECA.TO) dropped C$1.09 to C$68.78.

Banking shares fell on the writedown rumors. Toronto-Dominion Bank (TD.TO) was down C$1.62 at C$65.50, and Bank of Nova Scotia (BNS.TO) was down 51 Canadian cents at C$47.49.

Canadian Imperial Bank of Commerce (CM.TO) was down 8 Canadian cents at C$67.92 after it unveiled a management overhaul including a new chief risk officer and a new head for its corporate and wholesale banking arm.

TSX Group (X.TO) was down 68 Canadian cents at C$51.17 after it said chief executive Richard Nesbitt will leave the operator of the Toronto Stock Exchange next month to become CEO of CIBC World Markets (CM.TO).

In the materials group, Inmet Mining IMN.TO was off C$3.65 at C$75.24, and Potash Corp POT.TO was down C$3.33 at C$139.32. ($1=$1.00 Canadian) (Reporting by Scott Anderson; Editing by Peter Galloway)

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