October 27, 2009 / 2:34 PM / in 8 years

CANADA STOCKS-TSX drops as resources weigh

 * TSX down 93.06 points at 11,141.82
 * Gold-mining and energy stocks headline selloff
 (Adds details and comments)
 By Frank Pingue
 TORONTO, Oct 27 (Reuters) - Toronto's main stock index was
lower on Tuesday morning as shares of miner Kinross Gold K.TO
dropped after the company trimmed its production outlook.
 Kinross shares, the biggest drag on the index, were down 4
percent at C$20.74 after the company lowered its full-year 2009
production outlook and raised its estimate for average cost of
sales. [ID:nN27230566]
 Other gold miners joined the selloff, with Goldcorp G.TO
shares off 1.4 percent at C$40.40, and Yamana Gold YRI.TO
dropping 2 percent to C$11.79.
 "The U.S. dollar has been in a free-fall so you're getting
the inevitable (US$) bounce, and that's sort of giving cause to
some profit-taking in the commodities, which had such a great
run," said John Ing, president of Maison Placements Canada.
 "Commodities were very much overbought, but my expectation
is that as we go into the month-end we will probably get a
rally toward the end of the week."
 Investors were also booking profits on weighty energy
stocks, opting to ignore a rally in oil prices after three
straight days of decline.
 Shares of Suncor Energy SU.TO were 1.5 percent lower at
C$37.05, while Canadian Natural Resources CNQ.TO dropped 1.5
percent to C$72.33.
 At 10:20 a.m. (1420 GMT), the S&P/TSX composite index
.GSPTSE was down 93.06 points, or 0.83 percent, at
 ($1=$1.07 Canadian)
 (Editing by Peter Galloway)

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