Canada Stocks Fall as U.S. Slows; EnCana Drops, RIM Gains

By John Kipphoff

July 31 (Bloomberg) -- Canadian stocks fell as resource companies led the main stock index toward a second-straight monthly drop, after the U.S., Canada's top trade partner, said its economy grew less than forecast and oil prices slid.

Energy companies including EnCana Corp. and Canadian Natural Resources Ltd. paced declines. Losses in the market were limited as Research in Motion Ltd. gained after being recommended by CNBC ``Mad Money'' host Jim Cramer.

The Standard & Poor's/TSX Composite Index fell 0.5 percent to 13,614.46 at 10:08 a.m. in Toronto. Canada's main stock benchmark is poised for a 5.9 percent monthly drop, the steepest since November.

The U.S. Commerce Department said the economy grew at a 1.9 percent rate from April through June, and revised the figure for the fourth quarter of 2007 to show that gross domestic product receded.

EnCana, the country's largest energy company by market value, fell 2.6 percent to C$73.97. Canadian Natural Resources dropped 3.2 percent to $79.94. Suncor Energy Inc., the second- biggest oil-sands miner, slid 3.1 percent to C$56.60.

Crude oil fell on signs that high prices and slowing economic growth will curb fuel use in the U.S., the world's biggest energy-consuming country.

Research In Motion Ltd., the maker of the BlackBerry e-mail phone, gained for a third day, adding 2.9 percent to C$125.71.

Barrick Gold Corp., the world's largest bullion miner, rose 2.4 percent to C$44.42, after it reported a 22 jump in quarterly profit and the price of the precious metal climbed.

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