UPDATE 4-Toronto stocks plunge 7 percent on bailout vote

Mon Sep 29, 2008 3:00pm EDT
 
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*U.S. lawmakers reject $700 bln plan, raising uncertainty

*Energy sector tumbles 10.7 percent as oil slides

*Financial services drop as bank jitters spread (Recasts with plunge in TSX; Adds details)

TORONTO, Sept 29 (Reuters) - The Toronto Stock Exchange's main index tumbled almost 7 percent on Monday, the most in eight years, as U.S. lawmakers rejected a proposed $700 billion bailout of the financial services sector.

As the U.S. House voted to reject on the Wall Street rescue plan, concerns mounted that the fallout from the crisis in the United States was spreading rapidly around the globe.

Although critics said the package would have been too little, too late, the House vote fanned fears that the global economy was headed for a sharp downturn. Economists and politicians over the weekend had warned of dire consequences if a rescue plan was not put into place immediately.

"This is yet another Black Monday," said John Ing, president at Maison Placements Canada.

The S&P/TSX composite index .GSPTSE fell as low as 849.50 points, or 7 percent, to 11,276.50, marking the biggest intraday drop since October 2000. In the span of about five minutes while the vote was being tallied, 300 points were erased.

The TSX recovered some lost ground but plunged anew a few minutes later after the final tally showed the rescue package was indeed rejected. For links to more stories, see [ID:nN22402709]. At 2:25 p.m., the index was down 774.67, or 6.39, at 11,351.33.   Continued...