Toronto stocks tumble on resource demand fears

Mon Sep 8, 2008 5:12pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Leah Schnurr and Natasha Elkington

TORONTO (Reuters) - The Toronto Stock Exchange's main index closed at its lowest level in more than seven months on Monday after early enthusiasm over the U.S. mortgage bailout plan fizzled as worries over slowing growth weighed on resource and tech shares.

After jumping more than 2 percent early in the session, the heavyweight energy and materials sectors led the downside as worries resurfaced over how demand for commodities will fare in the face of sluggish global growth.

In the oil patch, Canadian Natural Resources slid 4 percent to C$80.00, while fertilizer producer Potash Corp of Saskatchewan was the biggest net loser, falling 5.7 percent to C$162.50.

BlackBerry-maker Research In Motion also dragged on the index, falling 3.8 percent to C$108.91, after a report that said the global smartphone market is being hurt by the slowing economy.

"I think the world globally is actually slowing down," said Paul Harris, portfolio manager at Avenue Investment Management.

"You have seen it in China and the rest of Europe, so I think that just puts a damper on the ability for commodities to grow."

The S&P/TSX composite index closed down 181.59 points, or 1.42 percent, at 12,634.83 with all but two of its 10 main sectors in negative territory.

It was the lowest closing level since the end of January, when the index fell more than 600 points in one day, concluding a five-day retreat, on fears of a U.S. recession.   Continued...

<p>A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch</p>