UPDATE 4-Toronto stocks extend hefty losses for 4th day

Fri Jan 18, 2008 5:17pm EST
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By Leah Schnurr

TORONTO Jan 18 (Reuters) - The Toronto Stock Exchange's main index pared losses but still capped the week with another drop on Friday, in a four-day plunge that has rattled the market amid deepening worries of a recession south of the border.

The index logged another 10-month closing low in broad-based declines after a White House plan to boost the U.S. economy failed to calm skittish investors.

The S&P/TSX composite index .GSPTSE closed down 58.51 points, or 0.46 percent, at 12,737.12, making for a loss of close to 1,000 points over just four days. Seven of the TSX's 10 main groups were lower.

"It's not really a question of whether we have a slowdown or a recession, the question is for how long and how deep," said Adrian Mastracci, portfolio manager and president at KCM Wealth Management Inc., in Vancouver.

"We've got a moving market here, we've got to let some dust settle down."

The bruised financial sector gave up 1 percent. Bank of Montreal BMO.TO was down 64 Canadian cents, or 1.2 percent, at C$54.01, and Bank of Nova Scotia BNS.TO fell 65 Canadian cents, or 1.4 percent, to C$45.87.

The heavyweight sector has been hit by worries over continuing fallout from the subprime mortgage mess, amid massive writedowns from financial institutions on both sides of the border.   Continued...