* Index hits lowest level since December 2003
* Losses accelerated by sliding oil
* TD announces credit trading losses, stock down
* Teck drops 32 percent on cost cut plans
TORONTO, Nov 20 (Reuters) - The Toronto Stock Exchange’s main index fell nearly 6 percent on Thursday morning to its lowest level since December 2003 as the price of oil slid and the financials group was weighed down by an earnings warning from Toronto-Dominion Bank (TD.TO).
Shortly after 10:15 a.m., the S&P/TSX composite index .GSPTSE was down 500.39 points, or 5.9 percent, at 7,990.17. All 10 sectors were in the red.
The financials group dropped 8.7 percent as Toronto-Dominion Bank (TD.TO) said that C$350 million in after-tax credit trading losses will eat into fourth-quarter earnings. TD, Canada’s second-largest bank, lost 7.3 percent to C$46.27.
The energy sector was down 7.6 percent as oil fell towards $50 a barrel, deepening losses from the previous four sessions as battered financial markets reflected crumbling confidence in the world economy and evidence mounted of falling fuel demand. [ID:nSP424057]
Teck Cominco TCKb.TO sank more than 34 percent to C$3.40 as the diversified miner announced first steps in its debt reduction plan, which include suspending its dividend.
The diversified miner also cut budgeted capital expenditures, sold its stake in the Lobo-Marte gold property, and said it will reduce zinc production at its Trail, British Columbia, complex. The measures announced amount to C$2.4 billion. [ID:nWNAB5804]
$1=$1.28 Canadian Reporting by Ka Yan Ng; Editing by Peter Galloway