UPDATE 3-Resources pull Toronto stocks to 5-mth low

Wed Jan 16, 2008 4:46pm EST
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(Updates with official closing numbers, adds detail)

TORONTO Jan 16 (Reuters) - The Toronto Stock Exchange's main index closed at its lowest level in five months on Wednesday, extending the previous day's heavy losses, as resource shares tumbled alongside commodity prices.

The S&P/TSX composite index .GSPTSE closed down 241.92 points, or 1.82 percent, at 13,074.86 with all but one of its 10 main sectors on the downside.

The index has plunged more than 600 points over the two sessions, amid deepening fears of a U.S. recession and the possibility of a global economic slowdown.

Resource issues were the biggest culprits on Wednesday, with the energy and materials sectors shedding 3 percent and 3.9 percent respectively, yanked lower by declining gold and oil prices amid concerns that economic turmoil could dampen demand for resources.

Potash Corp of Saskatchewan POT.TO and Suncor Energy SU.TO were among the biggest net decliners. Potash sank C$7.83, or 5.4 percent, to C$138.00, while Suncor fell C$4.60, or 4.6 percent, to C$96.01.

The index bounced back from earlier lows, when it briefly slid below the 13,000 mark, but it still finished at it lowest level since mid-August.

The tech sector was the lone group on the upside, edging up 0.6 percent, with Cognos Inc CSN.TO adding 52 Canadian cents, or 0.9 percent, to C$58.92.

The heavyweight banking sector was little changed, down 0.01 percent, as some financial shares moved higher. Toronto-Dominion Bank TD.TO rose C$1.34, or 2.1 percent, to C$66.50, while Bank of Montreal BMO.TO was down 74 Canadian cents, or 1.3 percent, at C$55.05.

($1=$1.02 Canadian) (Reporting by Leah Schnurr; editing by Rob Wilson)