UPDATE 3-Falling commodity prices take Toronto stocks lower

Mon Aug 11, 2008 5:22pm EDT
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* TSX index falls 1 percent as commodity prices drop

* Gold producers rattled by retreating bullion price

* Cardiome slumps after FDA requests more information

By Leah Schnurr

TORONTO, Aug 11 (Reuters) - The Toronto Stock Exchange's main index slid more than 100 points on Monday, pulled down by resource shares, which fell in tandem with commodity prices.

Drug maker Cardiome Pharma COM.TO was among the biggest drags on the index, losing 17.7 percent after the company said U.S. regulators had requested more information on its Kynapid treatment for a potentially fatal heart condition.

Shares of gold producers tumbled as they were rattled by a sharp drop in bullion prices as the U.S. dollar gained. Gold slumped to below $820 an ounce and shares of Barrick Gold (ABX.TO: Quote), the world's biggest producer, were down 6.4 percent.

"(Resource issues) definitely look like they're oversold, but I would say the market sentiment is still very negative, so I think they still have room to go down," Laura Lau, senior portfolio manager at Sentry Select Capital Corp.   Continued...