UPDATE 5-Toronto stocks plunge 7.6 pct on U.S. bailout vote

Mon Sep 29, 2008 3:43pm EDT
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* U.S. lawmakers reject $700 bln plan, raising uncertainty

* Energy sector tumbles 12.2 pct as oil slides below $96

* Financial services drop 6.1 pct as bank jitters spread (Adds analyst comments, details, updates figures)

By Jennifer Kwan

TORONTO, Sept 29 (Reuters) - The Toronto Stock Exchange's main index tumbled more than 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 had warned over the weekend of dire consequences if a rescue plan was not put into place immediately.

Fueling the carnage on the market was a $10 drop in the price of oil on rising concerns of a global slowdown, sending the heavily weighted energy sector down more than 12 percent. [ID:nN29389346]

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