UPDATE 5-Toronto stocks plunge 600 points on U.S. worries

Mon Jan 21, 2008 4:54pm EST
 
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(Updates with official closing numbers, adds details, quotes)

TORONTO Jan 21 (Reuters) - The Toronto Stock Exchange's main index plunged more than 600 points on Monday, its fifth day of heavy losses, as worries over a possible recession in the United States yanked it to its lowest close in more than a year.

The S&P/TSX composite index .GSPTSE closed down 604.98 points, or 4.75 percent, at 12,132.14 with all of its 10 sectors in negative territory. It was the biggest one-day net drop since Oct. 25, 2000, when the index closed down 840.26 points.

Since last Tuesday, the S&P/TSX composite has lost more than 1,500 points, or 11.4 percent, wiping out all of 2007's gains. Monday was the lowest closing level since early November of 2006.

Resource issues led the freefall on Monday, with the energy and materials sectors each giving up 5.7 percent. The groups have been stung by worries that demand for resources could be dampened by a slowdown.

Commodity prices weighed on the sectors, as oil and gold prices fell, following the direction of global stocks.

Suncor Energy SU.TO tumbled C$4.52, or 4.9 percent, to C$88.32, while Potash Corp of Saskatchewan POT.TO was down C$5.93, or 4.7 percent, at C$119.57.

The heavyweight financial sector shed 3.9 percent, with Royal Bank of Canada RY.TO and Manulife Financial MFC.TO hitting new 52-week lows. Royal finished down C$1.79, or 3.8 percent, at C$45.92, while Manulife was off 88 Canadian cents, or 2.4 percent, at C$35.66.

Around the world, stocks slumped on jitters that a U.S. slowdown could lead to a slowdown in global economic growth, while markets in the United States were closed for Martin Luther King Day.   Continued...