Toronto stocks dropped on Monday as traders cashed on last week's rally to a seven-month high. Weakness in the energy and mining sectors led the decline.

The S&P/Composite Index fell 143.85 points or 1.4% to move at 10,094.14. The index had posted its highest close since October 3 on Friday.

Mining stocks gave back some of the recently-seen gains and closed down 3.25%. First Quantum (FM.TO) dropped 4.75% and Teck Cominco (TCK.B.TO) slipped 3.8%.

HudBay Minerals (HBM.TO) announced it will sell the 16.7% stake it owns in Lundon Mining (LUN.TO) to GMP Securities. For the day, Lundin shares fell 12.3% while HudBay ended up a quarter-percent.

Energy stocks fell 2.6% as crude oil finished slightly lower on the NYMEX after rising to a six-month high last week. Canadian Oil Sands (COS.UN.TO) lost nearly 5%, Encana (ECA.TO) lost 3.6%, Suncor (SU.TO) fell 2.75% and Canadian Natural Resources (CNQ.TO) dropped 2.1%.

Ensign Energy Services (ESI.TO) climbed 3% 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.

The heavily-weighted Financial Index fell 1.5%. CIBC (CM.TO) dropped 2.25%, Bank of Montreal (BMO.TO) fell 1.7% and Scotiabank (BNS.TO) declined 1.5%.

In other corporate news, Agrium (AGU.TO) fell 0.4%. The company 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 more than 30%. The company is reviewing 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) dropped 5.2% 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.

Nortel Networks (NT.TO) has plunged about 17% after the company reported a net loss of US$507 million or US$1.02 per share for the first quarter, wider than US$138 million or US$0.28 per share in the prior-year quarter.

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

For comments and feedback: contact