(Adds portfolio manager comment, updates prices to close)
* TSX ends down 28.57 points, or 0.19 percent, at 14,725.98
* Index gains 4.7 pct in qtr; 0.9 pct rise for Sept
By Fergal Smith
TORONTO, Sept 30 Canada's main stock index fell
on Friday as this week's rally in energy stocks paused and gold
stocks retreated as concerns about the health of Germany's
biggest bank eased.
The Toronto Stock Exchange's S&P/TSX composite index
ended down 28.57 points, or 0.19 percent, at
It gained 0.9 percent in September and 4.7 percent in the
third quarter, and is close to breaking to its highest level in
more than a year.
The materials group, which includes precious and base metals
miners and fertilizer companies, lost 1.4 percent. Teck
Resources Ltd lost 3.8 percent to C$23.65.
Barrick Gold Corp shares fell 1.5 percent to
C$23.23 after a judge in Argentina ruled that operations at its
Veladero mine would remain suspended, saying repairs were
insufficient to reopen it after a leak of processing solution
containing cyanide earlier this month.
The index's overall losses were offset by gains for
industrial stocks as domestic data showed surprisingly strong
economic growth in July.
"We are seeing industrial stocks in both Canada and the U.S.
being relatively strong," said Steve Belisle, senior portfolio
manager at Manulife Asset Management. "I think investors are
looking at them now as a derivative for energy, because the
higher oil price means there's going to be more industrial
activity" as energy company spending increases.
Industrials rose 0.7 percent, helped by 1.1 percent gains in
both major railways and a 7.1 percent surge in shares of
Bombardier Inc after it announced it would supply
trains to a British rail operator..
The energy group was flat, following two days of strong
gains after OPEC struck a deal aiming to limit crude production.
Belisle said further oil price gains would help the earnings
outlook of not just energy producers but also financial stocks
with loans tied to the sector and real estate investment trusts
with exposure to property in oil-producing Alberta and
The Canadian economy got off to a stronger-than-expected
start in the third quarter, fueled by a rebound in oil and gas
extraction that had been disrupted by wildfires in Alberta
earlier this year.
Gross domestic product grew 0.5 percent in July, topping
analysts' forecasts for a gain of 0.3 percent.
(Additional reporting by Alastair Sharp; Editing by Chizu
Nomiyama and Sandra Maler)