CANADA STOCKS-TSX falls 3 pct, resources lead decline

Tue Nov 11, 2008 10:16am EST
 
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* Renewed economic gloom pressures all sectors

* Resource issues fall as oil drops below $60

* Light volume in holiday-thinned trade

TORONTO, Nov 11 (Reuters) - The Toronto Stock Exchange's main index fell nearly 3 percent on Tuesday morning in a decline led by energy and materials issues, which dropped on falling oil and metals prices.

Investor gloom about the economic environment deepened and helped push oil prices below $60 a barrel, while a firmer U.S. dollar put pressure on metals prices. [ID:nLB342361]

As a result of the commodity weakness, the Toronto index's oil and gas sector was down 3.7 percent and the materials group was off 6.5 percent.

Shortly after 10:05 a.m. (1505 GMT), the S&P/TSX composite index .GSPTSE was down 274.37 points, or 2.8 percent, at 9,414.43. All 10 of the index's main sectors were in the red.

Trading was expected to be fairly light as market participants were away for Remembrance Day in Canada and Veterans Day in the United States.

"Today's activity has to be taken in context, insomuch as it's probably going to be on lighter volume. So often times you'll get exaggerated moves on those types of days," said Peter Chandler, senior vice-president at Canaccord Capital in Waterloo, Ontario. (Reporting by Ka Yan Ng; Editing by Peter Galloway)