* Ends down 1.41 percent at 10,094.14
* TSX dips below 10,000 before rebounding
* Falling commodities lead slide
* Financials retreat 1.5 percent (Adds details, background)
By Ka Yan Ng
TORONTO, May 11 (Reuters) - Toronto’s main stock index fell more than 1 percent on Monday as retreating commodity prices weighed on the resource-heavy market and as investors took profits following last week’s big gains.
The energy group led all sectors lower, falling 3.1 percent as U.S. crude oil backed off a six-month high to slightly above $58 a barrel. The materials sector was off 0.73 percent as June gold GCM9 softened to $913.50.
Financials also weighed on the market as Canadian banks retreated along with U.S. lenders. News of several bank share offerings in the United States heightened worries about the dilutive impact on the still-fragile U.S. sector. [ID:nN11506115]
The heavyweight financials group slipped 1.5 percent as the sector gave back a sliver of its massive 60 percent rally since the TSX hit a low in March.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE finished the session down 143.85 points, or 1.41 percent, at 10,094.14, following the index’s 7.8 percent gain last week. It is up about 35 percent since the March low.
“I think it’s really being triggered by lower oil prices and the issuance of bank shares in the States. But overall it’s not too surprising given the extraordinary gains we’ve seen in the last couple of months,” said Kate Warne, Canadian market strategist at Edward Jones in St. Louis, Missouri.
EnCana ECA.TO led the decliners, sagging 3.6 percent to C$63.04, while Suncor Energy SU.TO lost 2.76 percent to C$36.23.
Among financials, Manulife Financial MFC.TO shed 2.35 percent to C$23.24, and Sun Life Financial SLF.TO dropped 5.28 percent to C$27.99.
Influential movers higher included Enbridge ENB.TO, up 3.12 percent to C$37.97, and TransCanada TRP.TO, up 1.97 percent at C$30.99.
Nine of the TSX’s 10 main groups ended lower.
Earlier, the index tumbled more than 2 percent to as low as 9,995.82. The S&P/TSX 60 index was off 1.44 percent to 613.04.
Warne said it was difficult to predict if the declines would continue but more volatility was expected.
“I think you’re going to see the markets and investors reacting a lot more to data as it comes out going forward. We’re likelier to see a choppier market,” she said.
“I do think that, overall, investors have become more optimistic but I think they are still a bit cautious.”
In other news, Canadian fertilizer producer Agrium Inc AGU.TO raised its takeover offer for U.S. rival CF Industries CF.N. Agrium was off 0.4 percent at C$51.80. [ID:nN11504828]
Former market darling Nortel Networks NT.TO said its quarterly loss widened as the global recession contributed to a steep drop in revenue. Shares of the telephone equipment maker, which filed for bankruptcy protection earlier this year, tumbled 17 percent to 24.5 Canadian cents. [ID:nN11522786]
$1=$1.17 Canadian Reporting by Ka Yan Ng; editing by Rob Wilson