* TSX down 13.42 points at 9,107.90
* Energy and financials lead drop
* Bank of Canada cuts interest rate (Adds details and comments)
By Frank Pingue
TORONTO, April 21 (Reuters) - Toronto’s main stock index was lower on Tuesday morning, falling on fresh concerns over gloomy U.S. corporate profits and after the Bank of Canada cut its key interest rate to an historic low.
A drop in oil prices pulled down the energy sector, while weighty financials dropped after Bank of New York Mellon Corp (BK.N) reported a lower quarterly profit, shining a spotlight on the difficult market environment for banks. [ID:nN21414260]
EnCana Corp (ECA.TO) led the energy sector lower as its shares dropped 2 percent to C$51.53, while Talisman Energy TLM.TO followed with a drop of 2 percent to C$13.92.
“Obviously oil (prices) took it pretty hard on the chin yesterday and as of right now you are not seeing a rebound, in fact you are seeing further weakness,” said Gareth Watson, Canadian equity advisor at ScotiaMcLeod.
“And at the same time the (corporate) results that are coming out are obviously indicating that 2009 is a difficult operating environment for financial stocks and that’s going to be reflected in the results coming out.”
The slide also came after the Bank of Canada lowered its benchmark interest rate by 25 basis points to 0.25 percent, but made no explicit commitment to taking unconventional measures to spur the economy. [ID:nN21297335]
At 10:00 a.m. (1400 GMT), the S&P/TSX composite index .GSPTSE was down 13.42 points, or 0.2 percent at 9,107.90. Earlier, it had fallen as much as 1.2 percent.
Five of the TSX’s 10 sectors were lower, led by a 0.7 drop among financials and a 0.59 percent drop in energy.
$1=$1.25 Canadian Editing by Peter Galloway; editing by Peter Galloway