UPDATE 1-Toronto stocks slump as resources, banks weigh

Thu Sep 11, 2008 9:55am EDT
 
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TORONTO, Sept 11 (Reuters) - The Toronto Stock Exchange's main index opened lower on Thursday, reversing a big rally in the previous session, as resource stocks slumped on weak commodity prices and financials dropped on concerns about the health of the U.S. financial sector.

Shortly after the open, the S&P/TSX composite index .GSPTSE was down 201.47 points, or 1.6 percent, at 12,295.68, with all of its 10 main groups lower.

The heavyweight energy sector slipped 1.4 percent, as the price of crude fell on a firmer U.S. dollar and concerns over weakening demand. Canadian Natural Resources (CNQ.TO: Quote) dipped 1.7 percent to C$77.63.

The resource-laden materials group fell 2.2 percent, as the price of bullion and some base metals sagged. First Quantum Minerals (FM.TO: Quote) sank 6 percent to C$48.49.

Financials declined 1.9 percent with Royal Bank of Canada (RY.TO: Quote) down 1.9 percent at C$48.60, as concerns about the health of the U.S. financial sector weighed after Lehman Brothers LEH.N failed to announce deals to raise capital.

In earnings, yoga-inspired apparel retailer Lululemon Athletica Inc LLL.TO (LULU.O: Quote) rose 1.4 percent to C$19.50, after it reported a sharp rise in second-quarter profit as it sold more trendy yoga-wear. [ID:nN11395324]

($1=$1.1.07 Canadian) (Reporting by Jennifer Kwan; Editing by Scott Anderson)