Nov. 11 (Bloomberg) -- Canadian stocks fell, pushing the main index to a two-week low, as commodity producers slid along with oil and metal prices on speculation that a recession will sap demand for raw-materials and profits.

Canadian Natural Resources Ltd. and Goldcorp Inc. paced declines among energy and mining shares as nine of 10 industry groups in the main index retreated. Manulife Financial Corp. led insurers lower on speculation that financial companies' losses will mount as global equities extend their slump. Teck Cominco Ltd. plunged the most in two decades after copper fell to a three-year low.

``It all comes back to the economy,'' said Ian Nakamoto, director of Toronto-based MacDougall MacDougall an MacTier Inc. in Toronto, which manages about C$4.5 billion. ``In a global recession, it's a matter of how far commodities will come down.''

The Standard & Poor's/TSX Composite Index dropped 2.7 percent to 9,424 in Toronto, the lowest since Oct. 28, as five stocks fell for every one that rose.

The S&P/TSX, which gets three-quarters of its value from energy, mining and finance shares, has slid 37 percent from a June 18 peak as commodity prices slumped and financial companies' mortgage-related losses increased.

Canadian Natural, the country's second-largest natural-gas producer, dropped 7 percent to C$53.46. EnCana Corp., Canada's biggest energy company by market value, slid 3.5 percent to C$56.94. Nexen Inc., which co-owns the Long Lake oilsands project, declined 7.9 percent to C$17.95. Talisman Energy Inc., another oil and gas producer, fell 6 percent to C$11.10.

Bullion Miners

Goldcorp, the second-biggest bullion mining company by market value, retreated 6.3 percent to C$25.81. Barrick Gold Corp., the largest, fell 4.9 percent to C$28.48.

Teck Cominco, Canada's biggest diversified mining company, dropped a record 20 percent to C$8.75 as copper prices slid and on speculation that prices for coal used in making steel will fall along with demand for the material.

The Vancouver-based company denied rumors that it's planning to sell stock to raise funds to pay off a $9.8 billion loan it used to buy Fording Canadian Coal Trust.

Crude-oil futures fell 4.9 percent to $59.33 a barrel in New York, dropping below $60 for the first time in 19 months, on speculation that the International Energy Agency will cut its 2009 oil demand forecast for a third month as the threat of the worst recession since World War II reduces fuel consumption.

Copper declined to a three-year low and gold slid on speculation a global recession will damp demand for industrial and precious metals. Corn reached a 1-year low.

Insurers Drop

Manulife Financial, Canada's biggest insurance company, slid 3.4 percent to C$25.75. Sun Life Financial Inc., the third- largest, fell 6.7 percent to C$27.24.

Goldman Sachs Group Inc. reduced its rating on the life- insurance industry to ``cautious'' from ``neutral,'' saying investment losses may force insurers to raise more capital and threaten credit ratings.

American International Group Inc. reported a record loss yesterday. The U.S. insurer's government rescue package was expanded to $150 billion this week. AIG's $60.9 billion of writedowns and credit losses raised the total among global financial companies to more than $919 billion.

Lenders also retreated, led by Royal Bank of Canada. The nation's biggest bank fell 2 percent to C$46.45.

Magna International Inc., North America's largest car-parts company, fell 8.3 percent to C$35.72, the lowest in 15 years, as General Motors Corp. tumbled to the lowest price since 1943 in New York trading on concern that it's approaching bankruptcy.

Retailers and producers of household goods were the only industry not to decline today, remaining little changed on speculation that they can best withstand a recession.

George Weston Ltd., the maker of Arnold bread and owner of Canada's biggest grocery chain, added 2.6 percent to C$60.15. Weston is among so-called consumer staples stocks that Nakamoto said he's been buying, because they'll prove relatively resilient in an economic contraction.

To contact the reporter on this story: John Kipphoff in Toronto at jkipphoff@bloomberg.net.

Last Updated: November 11, 2008 17:45 EST