January 28, 2010 / 3:38 PM / 9 years ago

CANADA STOCKS-TSX falls as earnings hit Potash Corp hard

* TSX down 0.71 percent at 11,263.48

* Potash Corp drops almost 7 percent

* Suncor leads energy producers down

By Claire Sibonney

TORONTO, Jan 28 (Reuters) - Toronto’s main stock index fell on Thursday morning after disappointing results from market heavyweight Potash Corp POT.TO sent shares of the world’s largest fertilizer maker tumbling.

One-time stock market darling — and possible takeover target — Potash Corp of Saskatchewan led the index’s decline, plunging 6.9 percent to C$108.52, after the company reported earnings well below market expectations. [ID:nN28196679]

“It’s obviously a bit of a down-drag,” said Bruce Latimer, a trader at Dundee Securities.

“A stock that carries that much weight on the Toronto Stock Exchange index is going to have an impact.”

At 10:18 a.m. (1518 GMT) the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 80.63 points, or 0.71 percent, at 11,263.48.

Also leading the index lower, Suncor Energy (SU.TO) was off 1.6 percent at C$34.14.

Oil prices rose above $74 early on Thursday, rebounding from six-week lows hit the previous day, as U.S. President Barack Obama’s State of the Union speech eased market worries. [O/R] But they fell back again on a stronger U.S. dollar, poor oil demand and rising fuel stocks.

$1=$1.06 Canadian Reporting by Claire Sibonney; Editing by Peter Galloway

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