CANADA STOCKS-Resources lead slide as TSX tumbles

Fri Oct 30, 2009 1:28pm EDT
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 * TSX falls 2.4 percent to 10,809.45
 * 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 fell
hard on Friday afternoon, unwinding all of the previous
session's gains, as its two big resource-based sectors bore the
brunt of the sharp decline.
 Declines were heavy in Suncor Energy SU.TO, Barrick Gold
ABX.TO 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.
 Suncor led all influential decliners, dropping 4.6 percent
to C$35.28, while Encana Corp ECA.TO shed 3.96 percent to
C$59.41. Barrick tumbled 4.3 percent to C$37.95.
 Gold prices fell below $1,040 an ounce as the greenback
edged higher. Oil eased further below $80 a barrel following a
3 percent jump the previous day.
 The U.S. dollar recovered after steep losses in the
previous session as stocks failed to build on big gains
following Thursday's data showing the U.S. economy grew in the
third quarter. [GOL/] [O/R] [FRX/]
 "The strength in the U.S. dollar has got everyone
discombobulated. The commodities are softening and so people
are getting out of commodities, both in oils and golds, and
other metals," said Sal Masionis, a stockbroker at Brant
 Overall, the oil and gas sector dropped 3.3 percent and the
materials group sagged 4.2 percent.
 At 1:05 p.m. (1705 GMT), the S&P/TSX composite index
.GSPTSE was down 265.77 points, or 2.4 percent, at 10,809.45.
At one point, the index fell as low as 10,790.59, handing back
all of Thursday's gains.
 Royal Bank of Canada RY.TO and other heavyweight banks
also handed back some of the meaty gains they made during the
index's 269-point rally on Thursday. Royal was down 2 percent
at C$54.30.
 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.
 The telecoms group was the sole bright spot among the TSX's
10 main groups, rising 1.3 percent, led by Rogers
Communications RCIb.TO, which jumped 3.7 percent to C$32.11.
 Entering the session, the TSX was down 2.8 percent for the
month of October from September as the market has been hit by a
recent string of triple-digit losses.
 (Editing by Rob Wilson)