September 5, 2008 / 2:35 PM / 10 years ago

UPDATE 1-Toronto stocks drop 200 pts on more economic woes

* TSX down more than 1,000 so far this week

* Weaker-than-expected U.S. jobs data rattles investors

* Further decline in oil prices hurts energy shares

(Adds details)

TORONTO, Sept 5 (Reuters) - Toronto’s main stock market index tacked on more losses on Friday as disappointing U.S. jobs data fanned concerns that Canadian exporters could suffer from a faltering economy to the south.

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 200.13 points, or 1.6 percent, at 12,614.01.

This comes on the heels of a steep 323.58 point loss on Thursday. So far this week the market has lost more than 1,000 points.

Investors were focused on U.S. jobs numbers that showed the labor market in August contracted more than economists had expected, adding to a big drop in nonfarm jobs in July.

Partially offsetting the dreary economic report from the United States, Canada’s largest trading partner, was a domestic report showing modest job creation in August after heavy losses in July.

“This is a follow on from the last few days. People are scared,” said Rick Hutcheon, president and chief operating officer at RKH Investments. “The market is minute to minute and it’s got a bad case of the frights right now.”

All 10 of the index’s main groups were lower led by a 1.9 percent swoon among the heavily weighted financial shares and a 2.7 percent drop among industrial shares.

Canadian Imperial Bank of Commerce (CM.TO) dropped 1.4 percent to C$62.15 and Royal Bank of Canada (RY.TO) fell 1.2 percent to C$47.93.

Energy shares, which account for about 30 percent of the market weighting, dropped 1.4 percent on the back of a 0.6 percent drop in the price for U.S. crude oil.

Suncor Energy (SU.TO) was off 1.2 percent at C$52.25 and Niko Resources (NKO.TO) slipped 0.9 percent to C$70.30.

Industrial shares were led lower by the country’s top railway companies. Canadian National Railway (CNR.TO) slipped 0.8 percent to C$53.20.

$1=$1.07 Canadian Reporting by Scott Anderson; Editing by Frank McGurty

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