October 28, 2009 / 2:16 PM / 9 years ago

CANADA STOCKS-TSX hit by soft earnings, oil price drop

 * TSX down 84.75 points at 11,968.79
 * Lower oil prices rattle energy stocks
 * Soft corporate earnings play role  (Adds details and comments)
 By Frank Pingue
 TORONTO, Oct 28 (Reuters) - Toronto’s main stock index was lower on Wednesday morning, hit by soft corporate earnings and by a drop in oil prices that shook EnCana Corp (ECA.TO) and its energy peers, extending a recent slide in the oil and gas sector.
 Suncor Energy (SU.TO) shares fell 1 percent to C$36.57, while EnCana followed with a drop of 1.4 percent to C$61.37.
 The energy sector has fallen in the past three sessions. Oil prices dropped to $79 a barrel on Wednesday after hitting a one-year high last week of $82 a barrel [O/R].
 The lower start to the TSX followed weakness in equities overnight and came as a number of companies reported soft earnings for the latest quarter.
 Shares of Nexen Inc NXY.TO dropped 1.3 percent to C$23.67 after Canada’s fourth-largest independent oil explorer said its third-quarter profit fell 86 percent. [ID:nBNG449399]
 Open Text Corp OTC.TO shares tumbled 5 percent to C$40.31 after the business software maker posted an 88 percent drop in quarterly profit. [ID:nN27263987]
 “It really just seems to be a continuation of a good three-day selloff,” said Francis Campeau, broker at MF Global Canada in Montreal. “It seems a bit overdone on the sell side ... but guys are still taking risk off the table.”
 At 9:55 a.m. (1355 GMT), the S&P/TSX composite index .GSPTSE was down 84.75 points, or 0.77 percent, at 11,968.79.
 ($1=$1.07 Canadian)  (Editing by Peter Galloway)                                      

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