TORONTO (Reuters) - The Toronto Stock Exchange's main index finished lower yesterday as financial issues were hit by more worries over the health of the US economy.

A cut in interest rates was undermined by the Bank of Canada's gloomy outlook, saying that it expects US sub-prime mortgage troubles to last longer than anticipated.

Financial shares slid 1.1 percent, with Canadian Imperial Bank of Commerce down C$2.96, or 3.4 percent, at C$84.75, and Bank of Montreal off C$1.64, or 2.7 percent, at C$59.96.

Laurentian Bank of Canada was down C$1.16, or 2.9 percent, at C$39.44 after its fourth-quarter earnings missed expectations.

The S&P/TSX composite index closed down 77.55 points, or 0.57 percent, at 13,579.62 with six of the market's 10 main groups lower.

Materials issues fell 0.4 percent, while industrial metals prices fell on worries over slowing demand.

The small utilities sector was off 1.2 percent.

On the upside, Agrium Inc rose C$1.82, or three percent, to C$62.75 a day after announcing it will buy US agricultural products supplier UAP Holding Corp for $2.65 billion, including debt.

Biovail Corp helped lift the health care sector 0.5 percent after the company came to an agreement with Watson Pharmaceuticals Inc that will delay a generic version of Biovail's Cardizem LA heart drug.

Biovail was up 35 Canadian cents, or 2.4 percent, at C$14.93.