TORONTO, July 26 (Reuters) - Toronto stocks finished lower on Monday as worries over corporate profits in the second half of 2004 triggered a broad-based slide that left the market with its weakest close since mid-June.

The Toronto Stock Exchange S&P/TSX composite index dropped 68.76 points, or 0.82 percent, to 8,314.55, its biggest one-day slide since June 14.

While many investors are concerned that corporate profits in the next two quarters will not match those of the comparable periods the year before, others seem more forgiving of the idea that earnings cannot just keep climbing.

"Investing is not a straight line up, and one just has to take the dips and the highs all together," said Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc.

"It's a bit of a wall of worry right now, so there's going to be doubt, but anything can change this market on a dime."

The information technology sector fell 2.7 percent to lead all losing sectors, while energy stocks were down 0.6 percent. Utilities was the only TSX subindex in positive territory, garnering a wafer-thin 0.12 percent gain.

Telecommunications equipment provider Nortel Networks Corp. (NT.TO) fell 15 Canadian cents, or 2.7 percent, to C$5.40, while Research In Motion (RIM.TO), which makes the BlackBerry wireless device, closed down C$3.57, or 4.5 percent, at C$76.20.

Heavily-weighted financial stocks eased 0.6 percent as the sector's banks and insurers fell victim to the general gloom that has been hampering markets in recent weeks.

Sun Life Financial (SLF.TO) dropped C$1.04, or 2.8 percent, to C$C$35.70, while Bank of Nova Scotia (BNS.TO) shares fell 35 Canadian cents, or nearly 1 percent, to C$36.00.

Easing concerns about summer supplies of gasoline, coupled with weaker oil prices, spurred profit-taking in the energy sector.

Shares of Canadian Natural Resources (CNQ.TO) dropped 85 Canadian cents, or 2 percent, to C$41.20, while EnCana Corp. (ECA.TO) fell 45 Canadian cents, or 0.8 percent, to C$58.50.

Some of the recent weakness in equities is being pinned on the Democratic Party's national convention, which many experts say is reminding investors that there could be change in U.S. administrations and policies.

"We're really in a bit of a summer malaise here," said Jim Huang, vice-president and portfolio manager at Altamira Investment Services.

"In the short term this downturn may not last that long because at the end of the day, when you look at second-quarter numbers, the profit growth looks very strong."

Market momentum was negative as 846 issues declined and 404 advanced on light volume of 165 million shares valued at C$2.28 billion.

The blue-chip S&P/TSX index dropped 3.86 points, or 0.83 percent, to 461.52.

U.S. stocks finished mostly unchanged, failing to advance as investors looked past some strong earnings reports and fretted over the possibility that corporate profit growth may slow in the months ahead.

The Dow Jones industrial average closed flat, off 0.30 points at 9,961.92, while the Nasdaq composite index closed 10.07 points, or 0.54 percent, lower at 1,839.02.

($1=$1.33 Canadian)

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