August 12, 2008 / 3:13 PM / in 9 years

UPDATE 1-Toronto stocks flat, commodities provide support

(Adds details)

*Financial group slips on credit worries

*TSX index gets support from energy, materials

*Rona shares edge up after quarterly results

TORONTO, Aug 12 (Reuters) - Toronto Stock Exchange’s main index was little changed on Tuesday morning as weakness in financial-services shares undermined a bounce-back in oil and mining shares after their tumble on Monday on lower commodity prices.

The heavyweight financial sector was down 1.1 percent due to a “spillover effect” from debt-related anxiety in the United States, said Sal Masionis, stockbroker at Brant Securities.

In New York, stocks were down following news that No. 3 U.S. bank JPMorgan Chase (JPM.N) said it had taken another $1.5 billion in writedowns since July as fallout from the U.S. housing slump continued.

The S&P/TSX composite index .GSPTSE was up 7.86 points, or 0.1 percent, at 13,211.05, with four of its 10 main groups higher.

Credit worries overcame a rebound in the key energy and resource-laden materials sectors, which were up 0.9 percent and 1.9 percent, respectively.

“We had a huge drop in the commodities yesterday so we’re having a slight rebound,” said Masionis, adding a mix of bargain-hunting and short-covering were likely the cause for the upswing.

EnCana Corp (ECA.TO) rose 52 Canadian cents, or 0.7 percent, at C$71.28, while Potash Corp (POT.TO) rose 4 percent to $178.40.

Canadian home improvement retailer Rona Inc RON.TO rose 11 Canadian cents, or 0.9 percent, at C$12.61 even though the company said a drop in consumer confidence and a slowing economy hurt its second-quarter profit.

Shares of Thomson Reuters Corp (TRI.TO) TRIL.L were down 20 Canadian cents, or 0.5 percent, at C$36.60, after the news and information publisher reported slower revenue growth in its markets division. ($1=$1.06 Canadian) (Reporting by Jennifer Kwan; Editing by Peter Galloway)

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