CANADA STOCKS-TSX finishes week in broad-based decline

Fri Jan 30, 2009 5:56pm EST
 
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* TSX finishes week down 0.8 pct, 3.25 pct in January

* Early rush into commodities unwinds on gloomy outlook

* Canada, U.S. economies show further contraction

* Canadian Oil Sands Trust gains on takeover rumors (Adds details)

TORONTO, Jan 30 (Reuters) - Toronto's main stock index fell on Friday in broad-based weakness, as economic worries weighed on most sectors after government data showed worsening conditions in both Canada and the United States.

The Canadian economy shrank more than expected in November, while the U.S. economy shrank in the fourth quarter at its fastest pace in nearly 27 years.

Uncertainty over the massive U.S. stimulus plan also sent a chill through financial sectors on both sides of the border.

"We're still talking about the bailout. It doesn't seem like it's getting good traction," said Francis Campeau, a broker at MF Global Canada.

In Toronto, the financial sector lost 0.21 percent. But that paled in comparison with losses suffered by the weighty energy and materials groups, which each dropped 1.3 percent, as both sectors failed to find support from firmer underlying commodity prices.   Continued...