CORRECTED - UPDATE 2-Toronto stocks tumble amid financial jitters

Mon Aug 25, 2008 5:24pm EDT
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(Corrects paragraphs 7, 8, and bullet point, to show Maple Leaf fell to a 52-week low, not record low.)

* TSX slumps 1.2 percent in broad decline

* Financials weigh amid persistent credit jitters

* Maple Leaf slumps after meat recall

TORONTO, Aug 25 (Reuters) - The Toronto Stock Exchange's main index gave up more than 150 points on Monday in a broad slump prompted by weak financials, as worries over growing fallout from the credit crisis rattled investor confidence.

Home-grown anxiety also weighed on the large financial sector as the major Canadian banks are set to report quarterly results this week. The group was down 1.9 percent.

Analysts said that expectations for the banks have been significantly lowered, and while they are optimistic there won't be any nasty surprises, results will be less than last year.

Bank of Nova Scotia BNS.TO and Bank of Montreal BMO.TO are set to kick off the round of reports on Tuesday. Scotiabank closed down 2 percent at C$47.64, while BMO also slipped 2 percent to close at C$44.06.

The sector was also caught in the downward momentum of U.S. banks as Credit Suisse cut American International Group's AIG.N price target and earnings estimate, while Lehman Brothers LEH.N fell on speculation a bid by Korea Development Bank won't happen. See: [ID:nSEO367339].   Continued...