TORONTO (Reuters) - The Toronto Stock Exchange’s main index closed lower as strong earnings from some of the country’s banks could not offset lingering concerns raised by Tuesday’s sell-off in Chinese stocks, while bargain hunters trimmed losses.The S&P/TSX composite index closed down 63.89 points, or 0.5 percent, at 12,981.13.

Six of the TSX index’s 10 main groups ended lower led by a 1.1 percent slide in the resource-laden materials sector.

The TSX closed flat Wednesday following Tuesday’s 2.7 percent slump, its biggest percentage drop in almost three years, triggered by a nearly nine percent fall in the Shanghai stock index. Weak US economic data this week added to worries over global growth and demand for commodities, analysts have said.

The key TSX index has given back 362 points or three percent so far this week.

“People are scratching their heads. There is obviously a fair amount of nervousness and anxiety out of China as to what happens to their market,” Irwin Michael, portfolio manager at ABC Funds, noting it’s good to see volatility.

“You’ll knock out people who don’t have the conviction,” he said.

The influential financial services sector, which closed down 0.6 percent, did not find support from firm quarterly results from Canadian Imperial Bank of Commerce, Bank of Montreal and National Bank of Canada.

CIBC slid 14 Canadian cents, or 0.1 percent to C$100.52, while Bank of Montreal fell 65 Canadian cents, or 0.9 percent, to C$70.11. National Bank of Canada fell 59 Canadian cents, 0.9 percent, to C$64.71.

“We tend to think the fundamentals are still positive, owing to low interest rates and decent earnings that we’re seeing, Michael added.

“On balance, we’re looking at the weakness in the marketplace as an opportunity to buy stocks.”

The heavyweight energy sector ended down 0.8 percent with Talisman Energy off 38 Canadian cents, or 1.9 percent, at C$19.79.

Among individual issues, shares of Nortel Networks Corp. slid 56 Canadian cents, or 1.6 percent, to C$34.50, after the telecoms equipment maker surprised investors with yet more results restatements.

Nortel will delay the filing of its 2006 annual report until later this month and will restate results for 2004, 2005 and the first nine months 2006.

Market volume was 377 million shares worth C$7.3 billion. Decliners outpaced advancer 962 to 616. The blue chip S&P/TSX 60 index closed 3.67 points lower, or 0.49 percent, at 740.10.