(Adds portfolio manager comment, updates prices to close)
* TSX ends down 288.35 points, or 2.09 percent, at 13,491.09
* All 10 of the TSX's main groups fall
By Alastair Sharp
TORONTO, Sept 22 (Reuters) - Canada's main stock index
tumbled more than 2 percent on Tuesday as a sell-off in
commodities walloped resource stocks, leading across-the-board
declines in volatile trade.
The fall followed roughly 1 percent gains on both Monday and
Friday after the Federal Reserve held U.S. interest rates steady
last week and as investors continued to fret about Chinese
economic growth.
"This sort of activity is like a waltz, you're going back
and forth," said Irwin Michael, portfolio manager at ABC Funds.
"It's a no-bid market. There are not many buyers out there,"
he said. "It's volatile, but it's a tug of war."
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended the session down 288.35 points, or 2.09 percent,
at 13,491.09. All 10 of its main sectors fell.
Gold, copper and U.S. crude oil prices fell, hit by a
stronger U.S. dollar and persistent demand worries, particularly
out of top resource consumer China. The declines sent the
Toronto index's materials group, home to mining stocks, plunging
4.4 percent.
Potash Corp POT.TO lost 6.5 percent to C$29.34, while
Barrick Gold Corp ABX.TO fell 7.2 percent to C$8.09.
The most influential mover was Valeant Pharmaceuticals (NYSE:VRX)
International VRX.TO , a large weight and an erratic stock,
which lost 5.4 percent to C$287.17.
The materials decline was echoed by the remaining nine key
sectors, with energy sliding 1.7 percent and the hefty
financials group, which has considerable exposure to resource
companies, also retreating 1.7 percent.
Toronto-Dominion Bank TD.TO , fell 2.1 percent to C$51.50,
while Royal Bank of Canada RY.TO lost 1.7 percent to C$71.88.
There were 208 decliners and 37 advancers, for a 5.62-to-1
ratio on the downside. The index posted three new 52-week highs
and 11 new lows.
"This market has done this before. You really don't have to
have a major reason - once the selling starts, it accelerates.
And the buying is the same," said David Cockfield, managing
director and portfolio manager at Northland Wealth Management.
"It's volatility and a tendency for people trying to follow
the market rather than just invest ... they jumped all over the
mining stocks."
Gold futures GCc1 fell 0.7 percent to $1,123 an ounce.
GOL/ U.S. crude CLc1 prices were down 1.8 percent to $46.17
a barrel, while Brent crude LCOc1 added 0.1 percent to
$48.97. O/R
Cockfield said if the downward volatility continues, buying
opportunities could present themselves but cautioned "Our view
is if you get caught up in volatility, you're going to lose."