January 27, 2010 / 5:37 PM / 9 years ago

CANADA STOCKS-TSX lower as credit worries drag down miners

* TSX down 0.35 percent at 11,321,71

* Miners lead slide; golds, oils also lower

* Teck Resources sags almost 6 percent (Adds details, updates prices)

By Claire Sibonney

TORONTO, Jan 27 (Reuters) - Toronto’s main stock index fell on Wednesday with the heavily weighted materials sector pulled down by concerns about the global economic recovery and demand for key commodities.

The TSX’s mining sub-sector was the biggest drag on the market, tumbling more than a 3 percent.

Teck Resources TCKb.TO led the slide, falling 5.7 percent to C$36.50, as industrial metals tumbled to multi-week lows on persistent worries over monetary tightening in China and uncertainty over U.S. plans to limit banks’ risk-taking. [MET/L]

“You really need that China card to play out ... no one had it in their head that the Chinese really want to slow down their economy,” said Paul Gardner, partner and portfolio manager at Avenue Investment Management.

“Overall, the commodities have had a run and there’s going to be real pressure on them on the downside — selling pressure,” said Gardner.

At 12:05 p.m. (1705 GMT) the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 39.48 points, or 0.35 percent, at 11,321.71.

Gold and oil prices were lower as the U.S. dollar hit a six-month high against the euro on concerns over Greece’s fiscal problems and ahead of a Federal Reserve interest rate decision. [GOL/][O/R].

Shares of EnCana (ECA.TO), Canada’s biggest natural gas producer, were down 1.9 percent at C$33.13, while Kinross Gold, was down 2.5 percent at C$18.02.

Canadian National Railway (CNR.TO) led the industrials down, sliding 0.7 percent to C$55.30, despite reporting late on Tuesday it is aiming for 10 percent earnings growth in 2010 and raising its dividend. [ID:nN25105294]

Investors had been looking for more signs of revenue growth as opposed to strictly cost-cutting to boost the bottom line, said Gardner.

He added that CN, which helps ship commodities and grains to China, will also be pressured by concerns that demand could weaken in the world’s fastest growing major economy.

$1=$1.07 Canadian Editing by Rob Wilson

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