CANADA STOCKS-Oil prices, profit-taking drag TSX lower

Fri Nov 20, 2009 5:32pm EST
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 * TSX down 20.97 points at 11,579.33
 * Index up 1.5 percent for the week
 * Energy sector leads retreat
 (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Nov 20 (Reuters) - Toronto's main stock index fell
on Friday as weaker oil prices, caused partly by a stronger
U.S. dollar, weighed on resource issues, including Suncor
Energy Inc SU.TO.
 Suncor dropped 0.5 percent to C$38.07, while Canadian
Natural Resources CNQ.TO fell 0.7 percent to C$70.60. Barrick
Gold ABX.TO, another top mover on the downside, fell 0.7
percent to C$47.00.
 Oil prices fell below $77 a barrel, with the U.S. dollar
rising for a second straight session as investor risk tolerance
shrank. [O/R] [USD/]
 "Oil is down a bit and that obviously has a big impact on
our market," said Jennifer Radman, vice-president and associate
portfolio manager at Caldwell Investment Ltd.
 The S&P/TSX composite index .GSPTSE ended down 20.97
points, or 0.18 percent, at 11,579.33, with six of its 10 main
groups lower. The index was up 1.5 percent for the week and
touched a 13-month high on Wednesday.
 Paul Taylor, chief investment officer at BMO Harris
Investment Management Inc, said investors locked in some
profits after the market's recent gains.
 "I think this is what we're going to see. We're going
to see choppy markets for the next while. We're not going to
see strong trends," he said.
 The TSX followed global markets lower on Friday as
investors cut their exposure to riskier assets. [MKTS/GLOB]
 The market slump also came after Bank of Canada Governor
Mark Carney said on Thursday evening that Canada's economy
performed worse than expected in the third quarter, but was now
recovering. He also cautioned that it risks further setbacks
due to a strong Canadian dollar. [ID:nN19514256]
 Earlier on Thursday, Finance Minister Jim Flaherty
suggested he thought the economy could have stood still in the
third quarter.
 However, analysts said the comments didn't have any major
bearing on the broader market.
 "They are being more overly cautious in their estimates,"
said Steve Ibel, institutional equities trader at Beacon
Securities in Halifax, Nova Scotia.
 Flaherty vowed on Friday to resist big, new spending
measures in his next budget, but said it was too early to pull
stimulus away from a still shaky economy. [ID:nN20237039]
 Other influential names on the downside included Rogers
Communications RCIb.TO, which dropped 2.6 percent to C$32.05.
The broader telecoms group was off 0.45 percent
 The blue chip S&P/TSX 60 index .TSE60 closed 1.59 points
lower, or 0.23 percent, at 688.99.
 ($1=$1.07 Canadian)
 (Additional reporting by Irene Kuan; editing by Rob Wilson)