TORONTO (Reuters) - Worries over dismal global growth along with sliding oil prices have sent Toronto stocks reeling in the first days of September, and analysts warn the market may have further to fall before it finds its footing.

Just three months ago, the Toronto Stock Exchange was the envy of most major markets as it catapulted to record highs on the back of surging commodity prices, which helped it overcome the economic fears and financial-sector disasters that have taken down its peers.

But since its peak in June, the S&P/TSX composite index has been trending steadily lower, taking its cue from declines in the commodities such as oil and gold that it is closely tied to.

But this past week's abrupt drop-off of more than 950 points speaks to more than just weakening commodities, analysts say. Worries over declining demand for resources, slowing global growth and the tight credit situation have converged to knock the confidence out of the market.

"Everyone is literally ready to throw in the towel," said Joe Ismail, a technical analyst at Maison Placements Canada.

Ismail said he would not be surprised to see the TSX retest or even fall below its January lows, when the composite index skidded more than 11 percent, or a stunning 1,566 points, over the course of just five days.

By comparison, Bay Street shed nearly seven percent in the first four days of September, a month traditionally viewed as being one of the worst for stock markets.

Analysts agree that the TSX is likely to see a short-term relief rally in coming days as the cheap stock prices tempt bargain-hunters back into the fray.

Indeed, after falling more than two percent early on Friday, the benchmark was able to claw back its losses to eke out a tiny gain of two points — its best day in a dismal week that was characterised by triple-digit declines.