(Updates with early trade, adds details)
* TSX down 4.26 points, or 0.03 percent, at 13,786.64
* Six of its 10 main groups rise, energy stocks weigh
TORONTO, Oct 27 (Reuters) - Canada's main stock index
slipped on Tuesday, hurt by a pullback in the country's two main
railways and losses among energy stocks as rising worries about
a supply glut pushed oil prices lower.
Those weights were offset by rising bank stocks, bounces in
two companies targeted by short-sellers, and an earnings beat
for the owner of the Tim Hortons coffee chain.
At 10:10 a.m. ET (1410 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 4.26 points, or 0.03
percent, at 13,786.64.
Declining issues outnumbered advancers at a 1.8-to-1 ratio.
The heavyweight financials group added 1.2 percent, with
Toronto-Dominion Bank TD.TO up 0.9 percent at C$54.69 and Bank
of Nova Scotia adding 1.1 percent to C$62.43.
Among the most influential were Canadian Natural Resources
Ltd CNQ.TO , which fell 2.4 percent to C$29.59, and Suncor
Energy Inc SU.TO , which declined 1.1 percent to C$36.63.
The overall energy group was down 3.6 percent, while
industrial stocks and utilities both lost more than 2 percent.
U.S. crude CLc1 prices were down 2.3 percent to $42.96 a
barrel, while Brent LCOc1 lost 1.5 percent to $46.82.
Canadian National Railway Co CNR.TO lost 1.5 percent to
C$80.60, pulling back after a solid rally ahead of its earnings
release due after the market close.
Its rival Canadian Pacific Railway CP.TO lost 2.6 percent
to C$195.88.
On the positive side of the ledger, Valeant Pharmaceuticals (N:VRX)
International Inc VRX.TO added 2 percent to C$148.20.
Valeant stock has tumbled in recent weeks and months,
firstly on scrutiny of its price hike strategy and lately due to
a short-seller's accusation it had artificially inflated its
revenue.
Financial technology company D+H Corp DH.TO gained 2.5
percent to C$32.94 after urging its investors not to rely on a
"misleading" report by a hedge fund it said was short selling
the stock. The stock had fallen almost 17 percent
on Monday.
Restaurant Brands International Inc QSR.TO advanced 5.2
percent to C$52.78. The owner of Burger King and coffee chain
Tim Hortons beat earnings expectations.