REPEAT-UPDATE 1-Toronto stocks plunge on financial worries

Tue Jul 15, 2008 11:31am EDT
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* TSX falls 2.5 percent percent as banks, oils sag

* Fears for U.S. financial system sparks selloff

* BoC holds rates at 3 percent but flags rising inflation

TORONTO, July 15 (Reuters) - The Toronto Stock Exchange's main index slid 2.5 percent on Tuesday, yanked lower by weak oil and gas shares and tumbling financials, as fears for the health of the U.S. financial system prompted a broad selloff.

The heavyweight financials sector, which was thumped in the previous session, extended its fall by 3.8 percent, as concerns over fallout from the credit crisis and a weakening U.S. economy continued to hammer global markets.

"It's fear over the financial system, rising inflation and slow growth," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

"When people get nervous it's easier to sell first and ask questions later."

At midmorning, the S&P/TSX composite index .GSPTSE was down 347.74 points at 13,393.55, with all 10 of its main sectors in the red.   Continued...