UPDATE 1-Toronto stocks fall broadly, resources drag

Tue Jun 24, 2008 10:55am EDT
 
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(Updates to midmorning)

* TSX falls nearly 1 percent in broad retreat

* Resource issues sag as oil prices see-saw

* Financial sector hit by fresh credit worries

TORONTO, June 24 (Reuters) - The Toronto Stock Exchange's main index tumbled on Tuesday morning, as resource shares retreated amid choppy oil prices and global markets set a negative tone.

The financial sector added to the downward momentum, caught up in resurgent worries over fallout from the credit crunch.

The energy and materials groups lost 1.2 percent and 0.8 percent respectively. In volatile action, the price of oil see-sawed after earlier rising to over $138 a barrel, while a rumor of an attack on Iran's nuclear facilities was denied.

Paul Taylor, chief investment officer at BMO Harris Investment Management Inc, said that continuing economic worries and falling world markets helped set the negative mood in Toronto.

"I think this is just, across the board, people still feel that we're not fully through the triple witch of higher energy prices, U.S. housing woes, and the specter of potentially higher U.S. interest rates as we go forward," Taylor said.   Continued...