October 16, 2009 / 2:13 PM / 9 years ago

CANADA STOCKS-TSX drops as bank and energy shares weaken

 * TSX down 53.78 points at 11,450.73
 * Bank and energy shares weigh  (Adds details and comments)
 By Frank Pingue
 TORONTO, Oct 16 (Reuters) - Toronto’s main stock index was lower on Friday morning as Royal Bank of Canada (RY.TO) and other banks fell after Bank of America Corp (BAC.N) reported a quarterly loss that was steeper than expected.
 Shares of Royal Bank were down 0.5 percent at C$55.70, while Toronto-Dominion Bank (TD.TO) shares were 0.4 percent lower at C$65.59.
 Bank of America Corp delivered a quarterly loss that was bigger than expected, a setback for investors who had been wowed by some strong corporate earnings earlier in the week. [ID:nN15485899]
 As market focus shifted to brimming oil inventories [O/R],energy stocks also fell as oil prices retreated from the year high above $78 a barrel touched earlier in the day.
 Shares of Suncor Energy (SU.TO) fell 1.6 percent to C$39.74 and Canadian Oil Sands COS_u.TO was down 1.8 percent at C$33.50.
 At 9:55 a.m. (1355 GMT), the S&P/TSX composite index .GSPTSE was down 53.78 points, or 0.47 percent, at 11,450.73. It fell 28 points on Thursday.
 “The stock market has been strong so there is a natural inclination to take some profits with any sort of earnings weakness,” said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.
 “But it just seems the trend has been to buy on weakness, so even if you have a drop like yesterday it seems to come back here, so there are obviously enough people on the sidelines with cash.”
 ($1=$1.04 Canadian)  (Reporting by Frank Pingue; editing by Peter Galloway)                                      

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