UPDATE 3-Toronto stocks knocked down by falling resources

Thu May 29, 2008 4:42pm EDT
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(Updates closing numbers, adds details)

*Index dragged down by falling resource issues

*Canadian Imperial Bank of Commerce falls as reports loss

TORONTO, May 29 (Reuters) - Tumbling resource shares sent the Toronto Stock Exchange's main index lower on Thursday amid sliding commodity prices, while Canadian Imperial Bank of Commerce CM.TO helped weigh the index down after the bank reported another big quarterly loss.

Falling resource companies were responsible for the bulk of the losses, led by energy shares, which were yanked down by a steep drop in oil prices.

Canadian Natural Resources CNQ.TO slid C$3.64, or 3.7 percent, to C$95.25, and Suncor Energy SU.TO gave up C$2.00, or 2.9 percent, to C$66.89. The group as a whole shed 2.9 percent.

The materials sector, home to resource shares, was down 2.2 percent, while miners suffered from a drop in prices for gold and other precious metals. Agnico-Eagle Mines AEM.TO lost C$2.16, or 3.1 percent, to C$67.96, and Inmet Mining IMN.TO fell C$1.80, or 2.6 percent, to C$68.65.

The S&P/TSX composite index .GSPTSE closed down 111.45 points, or 0.76 percent, at 14,577.17. The energy and materials groups were the only two sectors on the downside.

CIBC shed C$1.39, or 2 percent, to C$69.46. It said on Thursday it lost C$1.1 billion, or C$3.00 a share, in its second quarter on charges of C$2.5 billion for worsening structured credit positions.

But the financial sector as a whole rose 1.3 percent, with all of the other major banks pushing higher. Royal Bank of Canada RY.TO added C$1.07, or 2.2 percent, to C$50.53 after it said its second-quarter profit declined due to previously announced writedowns.

National Bank of Canada NA.TO rounded out the banking results on Thursday, reporting that its quarterly profit was hurt by losses tied to its asset-backed commercial paper portfolio. Shares of National climbed 68 Canadian cents, or 1.3 percent, to C$53.08. ($1=$0.99 Canadian) (Reporting by Leah Schnurr; editing by Peter Galloway)