CORRECTED - CANADA STOCKS-TSX drops as U.S. jobs growth stalls

Fri Sep 2, 2011 4:59pm EDT
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 *TSX ends down 98.33 points, or 0.77 pct, at 12,602.41
 *Index ends week 2.2 percent higher
 *Eight of 10 sectors weaker, materials group rises on gold
 (Corrects the number of sectors that were weaker in bullet
point and 9th paragraph)
 By Claire Sibonney
 TORONTO, Sept 2 (Reuters) - Toronto's main stock index
ended lower on Friday after grim U.S. jobs numbers revived
recession fears, but rallying gold miners helped cushion the
 Oil and gas shares were among the hardest hit as risk
assets were sold off after data unexpectedly showed U.S.
employment growth ground to a halt in August. [ID:nOAT004865]
 U.S. crude futures dropped more than $2 a barrel following
the report, sending Suncor Energy (SU.TO: Quote) down 3.2 percent to
C$30.00, and Canadian Natural Resources (CNQ.TO: Quote) down 3.7
percent to C$34.93.
 Offsetting the decline, gold miners climbed 3.1 percent to
the top of the gainers list, tracking higher bullion prices,
which neared $1,900 an ounce on safe-haven buying. [GOL/]
 Barrick Gold (ABX.TO: Quote) jumped 3.1 percent to C$51.97,
Goldcorp (G.TO: Quote) advanced 3.1 percent to C$53.76, and Yamana
Gold (YRI.TO: Quote) surged 5.5 percent to C$16.58.
 "Near term, you don't want to be underweight gold," said
Marcus Xu, director of equity investments at Genus Capital
Management in Vancouver.
 "If you actually look at the changes in gold prices versus
changes in gold stocks over the last three months, there's a
lot of value in gold stocks versus the underlying commodity,"
he added, pointing to small and mid-cap names that could be
takeover targets.
  The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed 98.33 points, or 0.77 percent, lower at
12,602.41. The index ended the week 2.2 percent higher.
 The TSX pared earlier losses of more than 1 percent as the
materials group - home to gold miners - gained 1.5 percent.
Telecoms also rose 0.25 percent, while the rest of the index's
10 sectors were weaker, including financials, off 1.3 percent.
 Laurentian Bank (LB.TO: Quote) lost 0.9 percent to C$43.20 despite
reporting a 17 percent increase in net income in its third
quarter as loan losses fell, beating analysts' earnings
expectations. [ID:nN1E7810G9]
 "Even with all these good earnings on all these banks, you
can see the bank shares haven't done much ... it's such a tough
environment for banks right now given that the yields are so
low," Xu said.
 ($1=$0.98 Canadian)
 (Reporting by Claire Sibonney; editing by Peter Galloway)