CANADA STOCKS-TSX stumbles on weaker commodities

(Updates to close)

* TSX ends down 28.69 points, or 0.2 percent, at 12,418.99

* TSX ends week 0.8 percent higher

* Energy and materials fall; financials edge up

By Claire Sibonney

TORONTO, Oct 5 (Reuters) - Toronto's main stock index backedaway from its highest level in nearly three weeks on Friday asconcerns about weakness in the global economy hurt commodityprices, countering unexpectedly strong North American jobs data.

U.S. crude oil futures settled down nearly $2 a barrel assigns this week of slowing in the manufacturing and servicessectors in Europe and China continued to weigh on investorsentiment.

Energy stocks followed suit, falling 0.8 percent. Thebiggest laggards included Suncor Energy

, down 0.5percent to C$33.00, Canadian Natural Resources, down1.6 percent to C$30.22 and Encana Corp, off 2.6 percentto C$21.27.

"Concerns remain about the outlook for global growth,particularly demand out of high-consumption emerging marketslike China, so we've gotten a little bit of weakness there,"said Craig Fehr, Canadian market strategist at Edward Jones inSt. Louis.

"Added to that is a strengthening U.S. dollar and all that'scoming together to push oil prices lower. Given the sensitivityto resource prices in the TSX we're seeing a little bit ofweakness there," he added.

Gold miners were also down sharply, off 1 percent, asbullion retreated from an 11-month high.

Yamana Golddropped 3.1 percent to C$18.60, BarrickGold

fell 0.6 percent to C$41.13 and Kinross Gold

lost 2.7 percent to C$10.59.

The Toronto Stock Exchange's S&P/TSX composite index

ended down 28.69 points, or 0.23 percent, to12,418.99. Six of the 10 sectors were negative. Financials edgedup 0.1 percent. Earlier, the index its strongest intraday levelsince Sept. 17.

The TSX ended the week 0.8 percent stronger, helped byencouraging U.S. data and optimism that Spain will eventuallyrequest a bailout, seen by some as the necessary next step toalleviating the euro zone's debt crisis.

The index's slant towards globally economic sensitivecommodity companies - which make up about half of the index -has caused the TSX to dramatically lag Wall Street in 2012. TheTSX is up about 4 percent year to date, versus a 16 percent risefor the S&P 500, near its best level in five years.

Better-than-expected employment data from Canada and theUnited States helped stem the losses on Friday.

In Canada, the economy added 52,100 jobs in September, morethan five times the consensus figure analysts had expected, andbolstering the Bank of Canada's case for an eventual interestrate rise.

Meanwhile, the U.S. unemployment rate unexpectedly droppedto 7.8 percent in September, reaching its lowest level sincePresident Barack Obama took office and providing a boost to hisre-election bid.

On Monday, Canadian markets will be closed for Thanksgiving,while U.S. government offices and some financial markets willclose for the Columbus Day holiday, prompting some investors tostay on the sidelines.

"Quite often on the Friday before a long weekend there'ssome selling coming into the market because people don't want tocarry positions for three days," said John Kinsey, portfoliomanager at Caldwell Securities.

(Editing by James Dalgleish)

((claire.sibonney@thomsonreuters.com)(+1 416 941 8142)(ReutersMessaging: claire.sibonney.reuters.com@reuters.net))


FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS:TSX market report........................................

Canadian dollar and bonds report...................

Reuters global stocks poll (Canada)...

Top News: Canada ....................................

FOR CANADIAN MARKETS DATA.............................