UPDATE 1-Toronto stocks slide as financials sag

Fri Jun 20, 2008 10:48am EDT
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(Updates to midmorning)

* TSX dips in see-saw session

* Resources gain as oil prices climb

* Financials fall amid credit crunch jitters

TORONTO, June 20 (Reuters) - The Toronto Stock Exchange's main index see-sawed around the break-even mark on Friday, weighed down by sagging financials, which offset early morning gains as the price of oil rebounded from a sharp selloff.

Financials helped pull the benchmark lower as the group was shaken by worries over more problems to come for U.S. banks in the wake of the credit crunch.

"The U.S. financials are still getting beaten up; they've still got a little bit of a ways to go," said Andrew Martyn, portfolio manager at Davis-Rea.

"My concern there is they continue to show losses and can't find ways to plug their balance sheet -- that's the big problem."

But resource issues cushioned the decline, buoyed by a rise in oil of more than $4 amid changing opinion that China's fuel price increase could boost rather than dampen demand.   Continued...