UPDATE 4-Falling resources take bite out of Toronto stocks

Tue May 27, 2008 5:03pm EDT
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*Index ends 1.6 percent lower

*Resource shares decline as commodities tumble

*Financials slide amid quarterly corporate results

By Leah Schnurr

TORONTO, May 27 (Reuters) - Tumbling resource shares led the Toronto Stock Exchange's main index sharply lower on Tuesday, as energy and materials issues took a beating amid skidding commodity prices.

A stronger U.S. dollar prompted a selloff in oil and gold, important underlying commodities for the Toronto benchmark, which is heavily populated with resource companies.

Energy producers led the way down, falling 3.2 percent. Suncor Energy (SU.TO: Quote), sagged C$3.09, or 4.3 percent, to C$68.15, while Canadian Natural Resources (CNQ.TO: Quote) lost C$2.81, or 2.8 percent, to C$97.94.

"We might be giving back over $3 in oil, but keep in mind where it's come from," said Irwin Michael, portfolio manager at ABC Funds.   Continued...