TORONTO (Reuters) - Toronto's main stock index fell broadly yesterday, pressured by softer oil and gold prices, while concerns about the deteriorating global economy weighed on financial issues.

Tumbling commodity prices combined to push the materials and energy sectors down 2.2 percent and 0.7 percent, respectively.

Among heavyweight issues pressuring the index, Barrick Gold was down 2.9 percent at C$44.79, while Goldcorp Inc. slipped 2.5 percent to C$35.42, as the price of gold dropped as short-term investors took profits.

Energy company Canadian Natural Resources fell 2.5 percent to close at C$42.80, retreating along with the price of crude, which settled at $40.08 a barrel, down 3.84 percent.

The price of crude fell as demand concerns were fueled by gloomy economic data, including a drop in US consumer spending in December.

"It's a realisation that the economy continues to weaken here and earnings expectations continue to ratchet down," said Michael Sprung, president at Sprung & Co. Investment Counsel.

The S&P/TSX composite index was down 70.07 points, or 0.81 percent, at 8,624.83, with nine of the TSX's 10 main groups ending lower.

Information technology was the lone sector in positive territory, up 0.38 percent, with Research In Motion ahead 2.6 percent at C$69.52.

The fall on the first trading day of February comes after the TSX logged a three percent drop in January for its fifth straight monthly loss, as fears over the state of the world economy continued to send investors to the exits.

At one point yesterday, the index sank 1.9 percent lower to its lowest level since January 23, but struggled back as US data showed a smaller than expected contraction in the manufacturing sector.

"It's still in bleak territory but not as bleak as some might have expected," said Paul Taylor, chief investment officer at BMO Harris Investment Management Inc.

Financials retreated 0.8 percent, pressured by concerns about the economy and the future of the US banking sector. Royal Bank of Canada sagged 0.6 percent to C$30.24.

Among individual stocks, Petro-Canada was a heavily weighted mover on the upside, rising 1.2 percent to C$26.91, after a newspaper report said the Ontario Teachers' Pension Plan planned to challenge management in a bid to boost the oil company's performance.