UPDATE 3-Toronto stocks stumble as credit worries weigh

Fri Jul 11, 2008 4:42pm EDT
 
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(Updates with closing numbers, adds details)

*TSX ends lower after choppy session

*Financials knocked down by credit crunch woes

*Resources remain higher as commodities rally

TORONTO, July 11 (Reuters) - The Toronto Stock Exchange's main index ended a choppy session lower on Friday as its financial sector dropped sharply on fears of more casualties from the credit crunch.

Worries that U.S. mortgage finance giants Fannie Mae FNM.N and Freddie Mac FRE.N might run short of capital amid the spreading housing crisis rattled markets around the world, and helped take 2.2 percent off Toronto's financial sector.

Overall uneasiness about the economic picture spurred broad losses elsewhere, and the index's big energy and materials sectors were the only two groups to hold onto gains as they benefited from rallying commodity prices.

The S&P/TSX composite index .GSPTSE closed down 34.78 points, or 0.25 percent, at 13,709.10, after hitting a high of 13,859.93 earlier in the session.

All of the major banks were down. Bank of Nova Scotia (BNS.TO: Quote) fell C$1.67, or 3.5 percent, to C$45.46, while Canadian Imperial Bank of Commerce (CM.TO: Quote) slid C$1.53, or 2.9 percent, to C$52.21.   Continued...