September 15, 2010 / 2:37 PM / in 7 years

CANADA STOCKS-TSX stumbles on lower oil, weak data

*TSX down 26.36 points, or 0.22 percent, at 12,166.62

*Weak energy sector weighs on TSX

*Canada, U.S. data keeps index under pressure (Adds details, quote)

By Jennifer Kwan

TORONTO, Sept 15 (Reuters) - Toronto’s main stock index fell on Wednesday morning after three days of gains as oil prices slipped and weak data splashed cold water on recent optimism about economic recovery.

The index’s energy sector, down 0.6 percent, dropped as U.S. crude oil futures fell as traders expected Enbridge’s (ENB.TO) big Canada-U.S. crude pipeline to restart soon. [O/R]

Suncor Energy (SU.TO) was down 0.8 percent to C$33.63, while Canadian Natural Resources (CNQ.TO) dropped 1.4 percent to C$34.36.

Also weighing on investor sentiment was economic data on both sides of the border, said Francis Campeau, broker at MF Global Canada, in Montreal.

Canadian manufacturing sales unexpectedly slid in July, reflecting weak U.S. demand for export goods such as cars and paper products, while U.S. industrial output rose at a slower pace in August and a measure of New York state business conditions slipped to the lowest level in more than a year.[ID:nN15446129] [ID:nN15145257]

“Most news was on the negative side this morning so whether you look at oil, Canadian manufacturing or U.S. Empire manufacturing index they’re all pointing to a bit of a slowdown,” he said.

At 10:07 a.m. (1407 GMT), the S&P/TSX composite index .GSPTSE was down 26.36 points, or 0.22 percent, at 12,166.62, with eight of its main groups lower.

The market was giving back some gains logged over the past three days, Campeau said. “Today feels like a breather.”

Takeover target Potash Corp (POT.TO), down 0.4 percent at C$151.88, was in the spotlight. China’s state-owned Sinochem Corp appeared unwilling on Wednesday to make a bid for Potash, even as Beijing voiced concern over BHP Billiton’s (BHP.AX) $39 billion bid for the Canadian company. [ID:nSGE68E0AG] [ID:nN15142696]

MDS Inc MDS.TO, one of the world’s biggest suppliers of medical isotopes, on Tuesday reported a loss from continued operations of $18 million in the quarter to July 31, compared with a profit of $9 million in the year earlier quarter. MDS shed 0.2 percent to C$10.33. [ID:nN14266985]

Lehman Brothers Holdings Inc LEHMQ.PK said it is suing Canadian Imperial Bank of Commerce (CM.TO) and dozens of other defendants to recover more than $3 billion it said it was deprived of as a result of its record bankruptcy two years ago. CIBC was down 0.4 percent at C$74.70. [ID:nN15157100]

$1=$1.03 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway

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