CANADA STOCKS-TSX posts first monthly loss since Feb

Fri Oct 30, 2009 4:44pm EDT
 
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 * TSX falls 1.5 pct to 10,910.75, ends Oct. down 4.25 pct
 * Resources key decliners, telecoms lone group to shine
 * August GDP down, doubts rise about growth forecasts
 (Adds details, updates prices)
 By Ka Yan Ng
 TORONTO, Oct 30 (Reuters) - Toronto's main stock index
broke its seven-month rally with a big drop on Friday, as its
two big resource sectors bore the brunt of the sharp decline.
 Losses were heavy in Suncor Energy (SU.TO: Quote), Barrick Gold
(ABX.TO: Quote) and other commodity-based issues, which account for
more than 40 percent of the index's weighting. The fall was
induced by softening prices for oil and gold, while the U.S.
dollar recovered from steep losses. [GOL/] [O/R] [FRX/]
 Suncor dropped 2.84 percent to C$35.92, while Encana Corp
(ECA.TO: Quote) shed 2.96 percent to C$60. Barrick tumbled 1.8 percent
to C$38.96.
 The S&P/TSX composite index .GSPTSE closed 164.47 points
lower, or 1.49 percent, at 10,910.75, paring a decline that saw
it skid as low as 10,767.58, unwinding all of the previous
session's 269-point surge.
 The main stock index finished the month lower for the first
time since February. In its seven-month rally, the TSX rose
more than 35 percent and almost without much give-back all the
way up. It finished down 4.25 percent in October.
 "I still think we're in for a correction. I think the
debate most people have is whether it's going to be between now
and the end of the year, or is it going to be end of the year,
January or February. It's hard to say," said Steve Ibel,
institutional equities trader at Beacon Securities in Halifax,
Nova Scotia.
 Also dampening the market's mood, a report on Friday showed
Canadian gross domestic product unexpectedly shrank by 0.1
percent in August from July, casting serious doubt on the Bank
of Canada's forecast for economic growth in the third quarter.
[ID:nN30410008]
 The telecoms group was the sole bright spot among the TSX's
10 main groups on Friday, rising 1.36 percent. Rogers
Communications (RCIb.TO: Quote) led the charge, jumping 2.5 percent to
C$31.75.
 (Editing by Rob Wilson)