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TSX ends down 1.1% at 21,979.36

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Posts its lowest closing level since July 2

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Materials sector drops 2.9%

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Technology ends 1.4% lower

(Updates at market close)

By Purvi Agarwal and Fergal Smith

Aug 6 (Reuters) - Canada's main stock index fell to a

five-week low on Tuesday, weighed by declines for technology and

metal mining shares, but the index closed well above its weakest

level of the day as some calm returned to global financial

markets.

The Toronto Stock Exchange's S&P/TSX composite index

ended down 248.27 points, or 1.1%, at 21,979.36, its

third straight day of declines and its lowest closing level

since July 2.

Earlier in the day, the TSX touched 21,659.26, as investors

caught up to a global stock market rout on Monday when the index

was closed for a market holiday.

Winding down of yen-funded carry trades and concern the

Federal Reserve has waited too long to cut interest rates have

spooked investors globally in recent days.

"Canadian stocks didn't go down yesterday because the market

was closed, now they're catching up," said Colin Cieszynski,

chief market strategist at SIA Wealth Management.

Wall Street's main stock indexes rebounded on Tuesday as

investors looked for bargains and dovish comments from Fed

officials lifted market sentiment.

The Toronto market's materials group, which includes metal

miners and fertilizer companies, lost 2.9% as gold prices

fell.

Technology declined 1.4% and financials, the TSX's most

heavily weighted sector, ended 1% lower.

Energy was down 0.4% even as the price of oil settled

0.4% higher at $73.20 a barrel.

Nine of the TSX's 10 main sectors lost ground. The exception

was real estate, which ended nearly unchanged.

Analysts say the sector could benefit from the recent drop

in borrowing costs.