Toronto's main index has dropped away from a seven-month high on Monday morning, as energy stocks are following crude prices lower.

The S&P/Composite Index has dropped 122.85 points or 1.22% to move at 10,112.14. The index posted its highest close for the index since October 3 in the previous session.

Energy stocks are down 3 cents as crude oil has dropped on the NYMEX. Canadian Oil Sands (COS.UN.TO) is down 4.3%, Encana (ECA.TO) has lost 3.9%, Suncor (SU.TO) is down 3.2% and Canadian Natural Resources (CNQ.TO) has dropped 3.1%.

On the earnings front, Ivanhoe Energy (IE.TO) has gained 2% after it reported a first-quarter net loss of US$12.3 million or US$0.04 per share, compared to a loss of US$8.5 million or US$0.03 per share in the same quarter last year.

Ensign Energy Services (ESI.TO) up 2.6% after the company reported that its first quarter net income was C$72.7 million or C$0.47 per share, compared to C$81.80 million or C$0.53 per share in the year ago quarter.

Mining stocks are down 2.8%, surrendering some recent gains. First Quantum (FM.TO) is down 4.1% and Teck Cominco (TCK.B.TO) has slipped 3%.

Financials are down 1.5% with all of the big six banks in the red. CIBC (CM.TO) has dropped 1.75%, Royal Bank (RY.TO) is off 1.6% and Scotiabank (BNS.TO) has declined 1.5%.

In other corporate news, Agrium (AGU.TO) is inched up a quarter-percent after it announced it is increasing its exchange offer to acquire all of the outstanding shares of CF Industries Holdings to $85.20 per CF share.

Meanwhile, CanWest (CGS.TO) has surged 11.5%. The company is reveiwing options to avoid bankruptcy, according to a report in the Globe and Mail, and is reviewing proposals from up to four investors.

Celtic Exploration (CLT.TO) is down 5% after the company announced that its first quarter net loss was C$5.04 million or C$0.12 per share, compared to a loss of C$7.38 million or C$0.20 per share in the year ago quarter.

On Friday, the S&P/TSX Composite Index added 270.94 points or 2.71% to close at 10,237.99.

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