UPDATE 2-Weak resources drag Toronto stocks lower

Wed Jul 23, 2008 5:09pm EDT
 
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(Updates closing numbers, adds details)

* TSX closes lower for second session in row

* Resources weigh as commodity prices sag

* Financials follow U.S. bank stocks higher

TORONTO, July 23 (Reuters) - The Toronto Stock Exchange's main index tumbled for a second session in a row on Wednesday, knocked 130 points lower as resource issues fell along with commodity prices.

The materials sector led the way down as shares of gold producers were battered by a 3 percent drop in bullion prices while the U.S. dollar rose.

A six-week low in the price of oil dragged down the heavyweight energy sector as crude fell $4 as a U.S. government report highlighted worries of softening U.S. demand. Oil settled at $124.44 a barrel.

Energy producers, miners and fertilizer firms were among the TSX's biggest laggards.

Potash Corp of Saskatchewan (POT.TO: Quote) topping the net losers with a drop of C$15.37, or 7.1 percent, to C$202.23. Workers at three mines gave the company notice that they will be in a legal strike position as of 3 p.m. ET (1900 GMT) on Friday.   Continued...