September 2, 2008 / 8:56 PM / 10 years ago

UPDATE 5-Toronto stocks slammed by falling resource issues

* TSX dives more than 470 points in broad selloff

* Index logs biggest percentage decline since January

* Resources fall along with commodity prices (Updates closing numbers, adds details)

TORONTO, Sept 2 (Reuters) - The Toronto Stock Exchange’s main index was hammered by a selloff in resources on Tuesday, plunging more than 3 percent as commodity prices fell, marking its worst day in more than seven months.

The heavyweight energy sector led the slide as oil prices slid on fading concerns over the impact from Hurricane Gustav on the U.S. oil industry.

Oil settled down $5.75 at $109.71 a barrel as reports suggested oil installations in the Gulf of Mexico had weathered the storm with only minor damage. Suncor Energy (SU.TO) fell 9.6 percent to C$54.91.

The resource-laden materials sector also yanked the Toronto index lower, as it was hurt by falling prices of gold and other metals, which followed oil’s example. Inmet Mining IMN.TO slid 7 percent to C$59.50.

The S&P/TSX composite index .GSPTSE closed down 471.51 points, or 3.42 percent, at 13,299.74 with all 10 of its main sectors ending lower. It was the biggest one-day percentage loss since January when Bay Street was knocked down by fears over the prospects for the U.S. economy.

The energy and materials sectors, which account for more than half of the index, shed 6.5 percent and 5.9 percent, respectively.

Other laggards included Potash Corp of Saskatchewan POT.TO, which fell 6.5 percent to C$172.70, while Canadian Natural Resources (CNQ.TO) slumped 6.5 percent to C$84.73.

Analysts said that with the threat of Gustav passed, worries had turned to concerns of falling demand in the face of a weak global economic outlook.

The tech sector also crumpled under pressure from worries over lower corporate spending, following comments last week from bellwether computer firm Dell DELL.O.

BlackBerry maker Research In Motion RIM.TO fell 2.4 percent to C$126.31, while the sector overall gave up 3.4 percent. ($1=$1.07 Canadian) (Reporting by Leah Schnurr; editing by Rob Wilson)

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