RTTNews - Toronto stocks have turned into negative territory on Friday afternoon, led by weakness in the telecommunications and financial sectors. The losses have been limited by gains for mining stocks.

The S&P/TSX Composite Index has dropped 51.49 points or 0.49% to move at 10,340.68. The index finished at its highest level in nearly eight months on Thursday.

Technology stocks have lost 1.8% to lead the decliners. Blackberry-maker Research in Motion (RIM.TO) has dropped 4.5% to move away from a two-week high.

Financials are down 1.4% as Royal Bank (RY.TO) has plunged 5.4% following its quarterly earnings report. Royal Bank reported a second-quarter net loss of C$50 million or C$0.07 per share, compared to a profit of C$928 million or C$0.70 per share in the year-ago quarter.

The other five big banks reported quarterly results earlier in the week.

On the upside, mining stocks are up 2.1% as copper saw further strength on the Comex. First Quantum (FM.TO) has added 2.8% and Teck Cominco (TCK.B.TO) has rallied 2.5% to lead the big names.

The Energy Index has given back early gains and is up just 0.15%. Talisman Energy (TLM.TO) has lost 2.4% after being downgraded to Sector Perform from Sector Outperform by CIBC World Markets.

EnCana (ECA.TO) is down 0.25% after the stock was downgraded to Market Perform from Outperform by BMO Capital Markets

Meanwhile, Magna International (MG.A.TO) is down 2.4%. Media reports suggest a preliminary agreement on emergency financing for Opel has been struck between Canadian car parts maker Magna and General Motors.

Brookfield Properties (BPO.TO) is down 0.8% after it was reinitiatated at Hold by Deutsche Bank Securities.

Héroux-Devtek (HRX.TO) has dropped 3.2% after the maker of aircraft equipment announced that its fourth quarter net income amounted to C$6.4 million or C$0.20 per share, compared to C$6.5 million or C$0.20 per share in the same quarter of last year.

On the economic front, Statistics Canada reported the nation's balance on current account transactions with the rest of the world on a seasonally adjusted basis was a $9.1 billion deficit in the first quarter of 2009. Economists expected a deficit of $10.5 billion.

Across the border, the U.S. Commerce Department reported gross domestic product fell 5.7 percent in the first quarter compared to the advance estimate of a 6.1 percent decrease. Economists had been expecting the pace of contraction to be revised to 5.5 percent.

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