Nov. 2 (Bloomberg) -- Canadian stocks fell for a second day as Research In Motion Ltd. dropped on an analyst downgrade and the biggest insurance companies slid on concern that earnings reports this week will show lingering effects of the recession.

BlackBerry maker Research In Motion retreated 5.8 percent after a Citigroup Inc. analyst reduced his rating on the company. Canadian Natural Resources Ltd., the country’s third- largest energy company by market value, lost 2.5 percent as natural gas prices fell for a second day. Sun Life Financial Corp., Canada’s third-biggest insurer, decreased 1.8 percent.

“The market is now figuring out whether this is going to be the beginning of a progression of quarters of growth or not,” said Sebastian Van Berkom, money manager at Van Berkom & Associates in Montreal, which manages about C$1 billion ($928 million). “Given the uncertainty of the economy recovery, it’s extremely difficult to come to a conclusion on that.”

The Standard & Poor’s/TSX Composite Index lost 32.40 points, or 0.3 percent, to 10,878.35.

The index lost fell 4.3 percent in October, posting the first monthly decline since February, as U.S. consumer spending, consumer confidence and home sales missed economists’ forecasts.

RIM fell 5.8 percent to a seven-month low of C$60.15 after Jim Suva, an analyst at Citigroup, cut his rating on the company to “sell” from “buy.” Suva told clients that carrier partners’ promotion of BlackBerry smart-phones is likely to slow as competing products, including Motorola Inc. phones based on Google Inc.’s Android operating system, come onto the market.

Reporting Results

Canada’s largest insurer, Manulife Financial Corp., which is scheduled to report earnings on Nov. 6, declined 0.5 percent to C$20.19. Analysts surveyed by Bloomberg estimate on average that third-quarter adjusted profit fell 28 percent from a year earlier. Sun Life, which reports Nov. 5, retreated 1.8 percent to C$29.40.

“We are expecting a mixed bag” in third-quarter results from the insurance companies, analysts at Credit Suisse Group AG, including James Bantis, wrote in a report today. Gains from rising equity investments may be offset by actuarial reserve increases, and the weak U.S. dollar is “another headwind,” they wrote.

A Bloomberg News survey of oil companies, producers and analysts found the Organization of Petroleum Exporting Countries raised crude-oil production last month to the highest level in 10 months.

Natural Gas Drops

Canadian Natural Resources, Canada’s second-largest natural gas producer, fell 2.5 percent to C$68.48. Gas for December delivery fell 4.4 percent to settle at $4.824 per million British thermal units on forecasts for mild weather that would limit demand for the heating fuel.

Suncor Energy Inc., Canada’s largest energy company, retreated 0.9 percent to C$35.59. Advantage Oil & Gas Ltd., which has operations in Western Canada, slumped 7.5 percent, the most in four months, to C$6.25.

Sino-Forest Corp., which operates tree plantations in China, led S&P/TSX companies with a 7.7 percent surge to C$16.40. Manufacturing in China expanded at the fastest pace in 18 months, according a purchasing managers’ index released by HSBC Holdings Plc and a government-backed PMI.

Taseko Mines Ltd. soared 11 percent to C$3.25 after announcing an increase to its copper and gold reserves at a mine. The increase extends the life of the mine to 33 years from 20 years.

To contact the reporter on this story: Matt Walcoff in Toronto at mwalcoff1@bloomberg.net.

Last Updated: November 2, 2009 17:02 EST