TORONTO, Oct 17 (Reuters) - Canada's main stock index gave back much of its weekly gain on Friday as gold prices fell and investors took profits in high-flying metal mining shares.
The S&P/TSX composite index (.GSPTSE), ended down 350.32 points, or 1.2%, at 30,108.48. For the week, the index was up 0.9%.
"It's safe to say that most of the blame for this would be on the pullback we had in precious metals," said Colin Cieszynski, chief market strategist at SIA Wealth Management. "We're seeing a case where people are taking money out of their winners. And precious metals and mining stocks have been massive winners."
The materials group (.GSPTTMT), which includes fertilizer companies and metal mining shares, fell 6%, its biggest decline since April 4. The price of gold , a traditional hedge against uncertainty, pulled back from a record high as fears eased of an escalating trade war between the U.S. and China. Gold was down 2.2%.Heavily weighted financials (.SPTTFS), dipped 0.2% and en
ergy (.SPTTEN), was down 0.3%. The price of oil clawed back a small part of its weekly decline, settling 0.1% higher at $57.54 a barrel.
Consumer staples (.GSPTTCS), was a bright spot, adding 1.6%, with food processing company Canada Packers Inc (CPKR.TO), up 7.2%.
The interest rate-sensitive real estate sector rose 0.8% as the Canadian 10-year yield touched its lowest level since April 30 at 3.062%.
The Bank of Canada will be putting more emphasis on potential risks when it decides what to do about interest rates later this month even as it tries to be more forward-looking, Governor Tiff Macklem said.
Reporting by Fergal Smith in Toronto and Ragini Mathur in Bengaluru; Editing by Sahal Muhammed and Diane Craft
