September 23, 2008 / 8:44 PM / 10 years ago

UPDATE 3-Toronto stocks fall on lower commodity prices

*TSX ends more than 100 points lower after choppy action

*Resource shares lead downside as commodities fall

*Uncertainty over U.S. bailout adds to volatility

*Financials rise on optimism over state of Canadian banks

(Updates numbers, adds details, quotes)

TORONTO, Sept 23 (Reuters) - The Toronto Stock Exchange’s main index ended a choppy session lower on Tuesday, dragged down by resource shares that fell with commodity prices, while uncertainty continued to surround the U.S. bailout proposal.

Companies tied to oil, gold and other commodities slid, with the heavyweight energy and materials sectors providing the lion’s share of losses on worries of slowing global growth and demand for resources.

In the oil patch, Canadian Oil Sands Trust COS_u.TO was down 4.3 percent at C$41.54, while fertilizer firm Potash Corp of Saskatchewan POT.TO tumbled 9.7 percent to C$167.80.

Uncertainty over the shape and outcome of the $700 billion financial sector bailout in the United States added volatility to the market as U.S. lawmakers heard testimony on the plan through the day. For details, see: [ID:nN23313135].

But Toronto’s financial sector pushed higher as investors saw optimism in the performance of the Canadian banks compared with their U.S. peers.

“(Canadian banks) did get beat up a bit and I think the feeling is that the Canadian financials may be divorced a bit from what’s happening to U.S. financials,” said John Kinsey, portfolio manager at Caldwell Securities Ltd.

The S&P/TSX composite index .GSPTSE closed down 105.44 points, or 0.83 percent, at 12,532.63 with six of its 10 main sectors on the downside. The index traded in a more than 300-point range from peak to trough during the day.

The financial sector led the upside, rising 2.1 percent, with Canadian Imperial Bank of Commerce (CM.TO) up 3 percent at C$62.27, and Bank of Nova Scotia (BNS.TO) gaining 3.3 percent to C$49.38.

The energy and materials sectors fell 2 percent and 4.7 percent, respectively, as oil and gold prices fell, pressured by fears of stalling demand and by a stronger U.S. dollar. Agnico-Eagle Mines (AEM.TO) was down 2.7 percent at C$66.50, while Husky Energy (HSE.TO) gave up 3.6 percent to C$41.76. ($1=$1.04 Canadian) (Reporting by Leah Schnurr; Editing by Peter Galloway)

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