January 10, 2008 / 3:29 PM / 11 years ago

UPDATE 1-Toronto stocks pare losses but resources weigh

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TORONTO, Jan 10 (Reuters) - The Toronto Stock Exchange’s main index was lower on Thursday morning but well off early lows as a rebound in gold-mining stocks partly offset profit-taking in other resource groups.

Financial stocks were hit by yet another profit warning by a U.S. financial institution, while energy and materials stocks followed the prices of oil and base metals lower.

Meanwhile the shares of Cogeco Inc (CGO.TO), which reported results before the market opened, plunged 6.1 percent after it reported a quarterly loss.

The S&P/TSX composite index .GSPTSE was down 67.90 points, or 0.5 percent, at 13,512.04 with all but one of its 10 main groups in the red. It fell as much as 142 points shortly after trading began.

The financial sector, which has dropped in five of the six trading days this year, fell 0.6 percent after Capital One Financial Corp (COF.N), a U.S. credit card issuer and banking firm, issued a profit warning that fueled more worry about the ongoing credit crisis.

But the biggest drops were in the energy and materials sectors, which fell 1.6 percent and 0.8 percent respectively.

Suncor Energy (SU.TO) dropped C$2.81 to C$106.35, Canadian Natural Resources (CNQ.TO) fell C$1.81 to C$71.93, and Potash Corp of Saskatchewan POT.TO was off C$5.10 at C$133.97.

Investors may have been locking in profits after jumps by both the energy and materials groups in the previous session.

Worry over an economic slowdown dragged on commodities, with U.S. crude down $2.10 at $93.57 a barrel, and copper and most other base metals lower.

Spot gold, however, rebounded sharply from earlier in the morning, rising above $884 an ounce. That pulled the TSX gold sub-sector up 0.7 percent.

The safe-haven utilities group added 0.1 percent.

Cogeco Inc fell C$2.42 to C$37.00 after the TV and communications firm said an impairment charge led to a loss in its first quarter. For details, see: [nN09628453]

Elsewhere, drugstore chain Jean Coutu Group PJCa.TO reported a big drop in second-quarter profit, which was expected, due to the sale of its U.S. Brooks Eckerd chain last year. For details, see: [nN10312877]

Jean Coutu stock rose 25 Canadian cents to C$10.41. ($1=$1.01 Canadian) (Reporting by Jonathan Spicer; Editing by Peter Galloway)

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