September 8, 2008 / 8:43 PM / 9 years ago

UPDATE 4-Toronto stocks fall on worry over commodity demand

*TSX ends lower as gives back early gains

*Resource shares fall on worries over demand

*RIM falls on concern of slowing smartphone market (Updates closing numbers, adds details, quotes)

TORONTO, Sept 8 (Reuters) - The Toronto Stock Exchange’s main index ended lower 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 (CNQ.TO) slid 4 percent to C$80.00, while fertilizer producer Potash Corp of Saskatchewan (POT.TO) was the biggest net loser, falling 5.7 percent to C$162.50.

BlackBerry-maker Research In Motion RIM.TO 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. For details, see: [ID:nL8709082].

“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 .GSPTSE 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.

The financial sector led the upside, buoyed after the U.S. government took control of mortgage finance giants Fannie Mae FNM.N and Freddie Mac FRE.N on Sunday, the latest in a series of emergency steps to help the struggling U.S. economy.

On Bay Street, all the major banks pushed higher, including National Bank of Canada, which rose 4.4 percent to C$52.51, while Canadian Imperial Bank of Commerce (CM.TO) gained 3.4 percent to C$64.42. The sector overall gained 1.5 percent.

The energy and materials sectors lost 3.4 percent and 4.9 percent, respectively. Among the laggards, Agnico-Eagle Mines (AEM.TO) was down 7.4 percent at C$51.26, while Suncor Energy (SU.TO) fell 6.7 percent to C$49.16.

The small tech sector slipped 1.6 percent, weighed down by RIM, while Nortel Networks NT.TO was off 2.5 percent to C$5.93. ($1=$1.06 Canadian) (Reporting by Leah Schnurr and Natasha Elkington; Editing by Peter Galloway)

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