Canada Stocks Fall on Lehman Failure; Energy Shares, Banks Drop

By John Kipphoff

Sept. 15 (Bloomberg) -- Canadian stocks fell after the bankruptcy of Lehman Brothers Holdings Inc. spurred concern that the fallout of the U.S. housing and mortgage crisis will spread further.

Suncor Energy Inc. led commodity producers lower as prices for oil, copper and corn tumbled. Royal Bank of Canada paced declines among financial companies.

The Standard & Poor's/TSX Composite Index dropped 394.50, or 3.1 percent, to 12,375.08 at 9:36 a.m. in Toronto as 22 stocks fell for every one that rose.

Suncor Energy, the world's second-largest oil-sands producer, declined 6.2 percent to C$47.07. Royal Bank, the nation's largest lender by assets, fell 3.7 percent to C$47.40.

To contact the reporter on this story: John Kipphoff in Toronto at jkipphoff@bloomberg.net.