CANADA STOCKS-TSX tumbles on TD warning, sliding oil price

Thu Nov 20, 2008 12:30pm EST
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* Index hits lowest level since December 2003

* TD announces credit trading losses, stock down

* Losses accelerated by sliding oil

* Teck drops 32 percent on cost cut plans

By Ka Yan Ng

TORONTO, Nov 20 (Reuters) - The Toronto Stock Exchange's main index fell more than 4 percent on Thursday as the financials group was weighed down by an earnings warning from Toronto-Dominion Bank (TD.TO: Quote) and the price of oil slid to a 42-month low.

The index's financials group dropped 7 percent, extending the previous session's slide as TD became the second bank this week, after Bank of Nova Scotia on Tuesday, to announce credit trading losses. [ID:N20398511]

TD, Canada's second-largest bank, said that C$350 million in after-tax credit trading losses will eat into fourth-quarter earnings. Its shares lost 7.3 percent to C$46.27.

All other major banks saw steep losses as worries mounted that similar news will emerge from TD's peers. CIBC (CM.TO: Quote) led all banks lower, down 9.3 percent at C$43.80. Heavyweight insurer Manulife Financial (MFC.TO: Quote) also fell, down 12 percent at C$18.47.   Continued...