July 30, 2010 / 2:31 PM / 7 years ago

CANADA STOCKS-TSX falls on weak oil, GDP data

*TSX down 61.15 points, or 0.52 percent, at 11,667.49

*Weak Canada, U.S. GDP data weighs on market

*All of TSX’s main sectors lower (Updates to midmorning, adds quotes)

TORONTO, July 30 (Reuters) - Toronto’s main stock index fell on Friday morning on a decline in oil prices and weaker than expected gross domestic product data in the United States, which fueled fears about the economic outlook.

The index’s big oil and gas sector fell 0.7 percent, with Suncor Energy (SU.TO) down 1.2 percent at C$33.49 and Canadian Natural Resources (CNQ.TO) dropping 1.2 percent to C$35.36. Oil prices fell to around $77.50 a barrel on fears about growth in the United States. [O/R]

Data on Friday showed U.S. growth slowed more than expected in the second quarter, helping to send U.S. stocks lower. [ID:nN29111411] .[.N]

Francis Campeau, broker at MF Global Canada in Montreal, said most of the weakness in the report came from personal consumption.

“The U.S. GDP shows how consumers are not really spending,” he said. “It raises concerns about the outlook. Consumers are the biggest part of the GDP equation.”

Canadian data on Friday showed real gross domestic product ticked up 0.1 percent in May, matching market views and an overall expectation that second-quarter growth slowed from stunning first-quarter expansion. [ID:nN30434455]

“Canadian GDP was soft as well but most of the attention was on the U.S.,” Campeau said.

At 10:03 a.m. (1403 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 61.15 points, or 0.52 percent, at 11,667.49, with all of its 10 main sectors lower.

Brookfield Properties Corp BPO.TO, one of Manhattan’s biggest landlords, reported a sharp rise in quarterly funds from operations, and said it plans to transform itself into a pure-play office property company. Its shares rose 2.9 percent to C$16.51. [ID:nSGE66T0V8]

Research In Motion RIM.TO, down 0.6 percent at C$57.36, was in the spotlight as an increasingly heated battle in the global smartphone market is set to weigh on handset vendors’ profit margins for the rest of the year, analysts said on Friday. All top cellphone vendors including Nokia NOK1V.HE, Samsung Electronics (005930.KS) and RIM RIMM.O are rolling out new smartphone models for the holiday sales-fueled fourth quarter. [ID:nLDE66T00D]

$1=$1.03 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway

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