UPDATE 5-Toronto stocks tumble on resource demand fears

Mon Sep 8, 2008 5:10pm EDT
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*TSX gives back big early gains

*Resource shares fall on worries over demand

*RIM falls on concern of slowing smartphone market (Adds details, quotes)

By Leah Schnurr and Natasha Elkington

TORONTO, Sept 8 (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 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.   Continued...