CANADA STOCKS-TSX tumbles on resources, banks, profit-taking

Mon May 11, 2009 4:46pm EDT
 
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* Ends down 1.41 percent at 10,094.14

* TSX dips below 10,000 before rebounding

* Falling commodities lead slide (Adds details)

TORONTO, May 11 (Reuters) - Toronto's main stock index fell more than 1 percent on Monday as retreating commodity prices weighed on the resource-heavy market and as investors took profits following last week's big gains.

The energy group led all sectors lower, falling 3.1 percent as U.S. crude oil backed off a six-month high to slightly above $58 a barrel. The materials group was off 0.73 percent as June gold GCM9 softened to $913.50.

Financials also weighed on the market, falling 1.5 percent, as Canadian banks retreated along with U.S. lenders. News of several bank share offerings in the United States heightened worries about the dilutive impact on the still-fragile U.S. sector.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE finished the session down 143.85 points, or 1.41 percent, at 10,094.14, following the index's 7.8 percent gain last week.

"I think it's really being triggered by lower oil prices and the issuance of bank shares in the States. But overall it's not too surprising given the extraordinary gains we've seen in the last couple of months," said Kate Warne, Canadian market strategist at Edward Jones in St. Louis, Missouri.

EnCana (ECA.TO: Quote) led the decliners, sagging 3.6 percent to C$63.04, while Suncor Energy (SU.TO: Quote) lost 2.76 percent to C$36.23.   Continued...