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Canadian Stocks Fall, Led by Energy Producers; RIM Advances

By Elizabeth Stanton

Nov. 10 (Bloomberg) -- Canadian stocks fell for the first time in six days, led by energy producers, as natural gas slid to the lowest level in almost two weeks.

Canadian Natural Resources Ltd. and EnCana Corp., the country’s two biggest natural gas producers, fell more than 1.5 percent. Thomson Reuters Corp. declined after European regulators announced an antitrust probe. Research In Motion Ltd. rose after an analyst estimated rival Motorola Inc. sold half the Droid phones on hand for the product’s first weekend.

The Standard & Poor’s/TSX Composite Index fell 60.14 points, or 0.5 percent, to 11,426.74 as of 4:10 p.m. in Toronto. The main benchmark for Canadian equities yesterday closed less than 1 percent below its Sept. 22 high for the year. The index is up 27 percent in 2009, compared with a 21 percent gain for the Standard & Poor’s 500 Index of U.S. companies.

“Canada will probably digest some of its gains a bit, but we still believe in being overweight Canada in a global portfolio,” said Paul Vaillancourt, the Calgary-based director of portfolio strategy for a unit of Franklin Resources Inc. that manages $17 billion globally. “As the global economy continues to heal, the Canadian stock market will continue to benefit.”

Canadian Natural Resources fell 1.8 percent to C$70.82. EnCana slid 2 percent to C$61.50. Natural gas for December delivery fell 4.4 percent to $4.467 per million British thermal units on the New York Mercantile Exchange on forecasts for mild weather in most of the U.S. in the coming two weeks.

Data Provider

Thomson Reuters fell 1 percent to C$34.15. The news and data provider created in a merger last year faces a probe into possible restrictions on competitors’ use of identification codes for real-time market data feeds. Bloomberg LP, the parent of Bloomberg News, competes with Thomson Reuters in selling financial and legal information and trading systems.

Research In Motion, maker of the BlackBerry phone, gained 2.7 percent to C$66.80, its fourth straight advance. Motorola probably sold 100,000 Droid phones over the weekend, Mark McKechnie at Broadpoint AmTech Inc. said. The Droid uses Google Inc.’s Android operating system. It went on sale Nov. 6 in Verizon Wireless’s retail stores and on its Web site.

RIM last week said it might begin repurchasing as many as 21 million shares on Nov. 9. The shares rose 4.8 percent yesterday.

Royal Bank of Canada rose 0.7 percent to C$56.82, adding to a 2.2 percent gain yesterday. Canada’s biggest lender was upgraded to “buy” from “neutral” at UBS, which said excess capital will drive higher returns.

Ensign Energy Services Inc. fell 5.5 percent to C$15.42. CIBC World Markets and Macquarie Group Ltd. downgraded Ensign a day after the oilfield services contractor reported third- quarter results that fell short of analyst estimates.

Imperial Metals Corp. soared 46 percent to C$8.85. The company released drill results for holes at the Red Chris copper and gold property in British Columbia.

To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net

Last Updated: November 10, 2009 16:19 EST

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