Canadian stocks fell, capping the main index’s eighth weekly drop since June, as commodities producers tumbled on concern that falling prices for oil, metals and grains will reduce profits.

Canadian Natural Resources Ltd. paced a decline in energy producers as oil fell more than $4 a barrel. Potash Corp. of Saskatchewan Inc. retreated after prices for corn and soybeans fell to the lowest in four months. Losses were limited as Research In Motion Ltd. rose on a Credit Suisse Group AG recommendation of rival Apple Inc., and Sun Life Financial Inc. led a rally in insurers.

The Standard & Poor’s/TSX Composite Index fell 0.3 percent to 13,341.74. The index dropped 1.2 percent. Canada’s main stock benchmark has retreated more than 11 percent from its June 18 record as oil and other commodities slid, dragging down the related stocks that make up half of the S&P/TSX’s value.

“The hot money is moving out of commodities and looking for something else,” said Keith Summers, who helps oversee $900 million as chief investment officer at Stonegate Private Counsel in Toronto. “As crude drops further, it’ll probably hurt our index.”

Oil, gold, copper and wheat slumped today, sending the Reuters/Jefferies CRB Index to a four-month low, as a stronger U.S. dollar eroded demand for raw materials as an investment hedge. Commodities account for almost half of Canada’s exports.

Canadian Natural

Canadian Natural Resources, the developer of an oil-sands project in northern Alberta, slid 7.3 percent to C$77.58 and contributed most to the drop in the S&P/TSX.

Suncor Energy Inc., the world’s second-largest oil-sands mining company, slid 2.2 percent to C$54.07. Larger rival Canadian Oil Sands Trust, fell 5.6 percent to C$47.33, the most in three months. EnCana Corp., Canada’s biggest oil and gas producer by market value, dropped 4.4 percent to C$70.95.

Potash Corp., the biggest maker of crop nutrients, lost 2.7 percent to C$182.99. Teck Cominco Ltd., Canada’s largest diversified mining company, dropped the most in five weeks, falling 5 percent to C$41.24.

Goldcorp Inc., the world’s second-biggest bullion producer by market value, fell 5.3 percent to C$33.10, a 6 1/2-month low.

Measures of raw-materials and energy shares slid 3.4 percent and 3 percent, respectively. A gauge of computer-related stocks that derives more than four-fifths of its value from Research In Motion advanced 5.7 percent.

The maker of the BlackBerry e-mail phone rose the most in three months, gaining 6.6 percent to C$142.75. Credit Suisse said that Apple, the maker of the rival iPhone, will withstand the economic slowdown.

Financials Jump

Financial shares rallied 2.2 percent as a group, led by Sun Life, which gained on an upgrade from RBC Capital Markets.

Sun Life rose the most in two weeks, adding 4.4 percent to C$39.81. Canada’s third-largest insurance company was raised to “outperform” from “sector perform” by RBC analyst Andre- Philippe Hardy. The stock has dropped too much this year, the Toronto-based analyst said in a note to clients.

Manulife Financial Corp. advanced as Desjardins Securities reiterated its “Top Pick” rating.

Manulife, which yesterday reported an 8.5 percent drop in quarterly profit, climbed 3.7 percent to C$37.57, the most in three weeks. Canada’s biggest insurance company was less affected than expected by the slump in equity markets, had “minimal credit issues,” and increased the quarterly dividend more than estimated, Desjardins’s Toronto-based analyst Michael Goldberg wrote in note to clients today.

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