* TSX sags 1.15 percent to 12,070.66
* Energy, financials, materials big decliners
* SEC charges Goldman Sachs with fraud (Updates to close)
By Ka Yan Ng
TORONTO, April 16 (Reuters) - Toronto’s main stock index fell more than 1 percent on Friday as financial and resource issues were knocked lower by news that Goldman Sachs has been charged with fraud by the U.S. securities regulator.
U.S. equity markets also tumbled after the Securities and Exchange Commission alleged fraud in the investment bank’s structuring and marketing of a debt product tied to subprime mortgages, which cost investors more than $1 billion. [ID:nN16131161]
The Toronto index’s heavily weighted financial sector dropped 0.69 percent, with Toronto-Dominion Bank (TD.TO) off 1.08 percent at C$76.13. Insurance giant Manulife Financial (MFC.TO) fell 2.12 percent to C$19.40.
But Royal Bank of Canada (RY.TO), the country’s biggest lender, managed to eke out a gain of 0.03 percent to C$61.39.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended down 140.86 points, or 1.15 percent, at 12,070.66, after hitting a one-week low earlier in the session following the Goldman news.
“The biggest factor that caused the market to turn was Goldman Sachs. That’s cast a pall on the financials sector,” said Michael Sprung, president of Sprung & Co Investment Counsel.
“In Canada, we’ve been impacted as well by the fact that oil, copper and gold are down. It’s really not a pretty day for people involved in the Canadian market.”
With investors moving riskier assets off the table, resource shares extended earlier losses as commodity prices tumbled after the Goldman news. Oil prices fell sharply, pushing the energy sector down 1.95 percent. [O/R]
$1=$1.01 Canadian Reporting by Ka Yan Ng; editing by Rob Wilson