* TSX falls 2 percent to 11,285.76
* Resource issues lead retreat
* Copper touches lowest level in a month (Adds details, comments)
By Scott Anderson
TORONTO, Sept 24 (Reuters) - Toronto’s main stock index ended lower on Thursday for a second day in a row, pulled down by falling oil and metals prices, as caution returned to the market.
Mining companies led the decline with gold producer Agnico-Eagle Mines (AEM.TO) falling 4.4 percent to C$69.25, and base metals miner Teck Resources TCKb.TO off 4 percent at C$28.95
The index’s materials group, home to mining shares, fell 2.2 percent as copper dropped to its lowest level in more than a month because of rising metals inventories and weak U.S. housing data. [ID:nLO57318]
The big energy sector fell 2.5 percent as high U.S. crude inventories sparked fears of lower fuel demand. [ID:nSYD509979] Suncor Energy (SU.TO) was off 2 percent at C$37.44, while EnCana Corp (ECA.TO) finished down 2.2 percent at C$60.91.
The S&P/TSX composite index .GSPTSE closed down 231.78 points, or 2 percent, at 11,285.76.
“Investors have become slightly more cautious today,” said said Kate Warne, Canadian market strategist at Edward Jones in St. Louis, Missouri.
“We are seeing everything that has been going up over the last few weeks suddenly reverse today. Oil is down and the U.S. dollar is up,” Warne said.
“It’s almost as though the good news that we’ve been expecting is not going to be as good. We are returning to a bit of caution and that’s probably a positive.”
All 10 of the TSX index’s main groups were lower with technology issues down 1.8 percent and the heavily weighted banking sector falling 2 percent.
BlackBerry maker Research In Motion RIM.TO dropped 2.5 percent to C$90.16 ahead of its quarterly earnings report. After markets closed, RIM posted a weaker quarterly profit and gave an outlook that fell short of analyst expectations.
The TSX’s decline -- its fifth in six sessions -- follows a steady rise last week that saw the composite index touch an 11-month high on investor optimism that the global economy was recovering.
“The market was a little overbought. Everybody was expecting it to retrench a little bit and it has,” said Irwin Michael, a portfolio manager at ABC Funds.
“The market seems to be sawtoothing its way upward ... It appears that many investors are using these declines, which ultimately makes them much more shallow, as an opportunity to purchase assets.”
$1=$1.09 Canadian Reporting by Scott Anderson; editing by Rob Wilson