(RTTNews) - Canadian stocks closed modestly lower on Friday adding to Thursday’s sharp decline. Bay Street followed the lead of the U.S., as the House of Representative’s passed the financial rescue bill.

The S&P/TSX closed down 97.19 points or 0.89% at 10,803.35 points. The market fell by more than 800 points on Thursday.

In the big news of the day, the House passed a $700 billion bill to bail out struggling banking companies by a solid 263 to 171. Four days earlier, an original plan was voted down, sending global markets worldwide sharply lower.

Earlier in the day, U.S. Department of Labor data showed that non-farm payroll employment fell by 159,000 jobs in September, which was more than expected.

The Bank of Canada said on Friday it would inject C$20 million into banking markets, up from C$8 billion to help struggling lenders.

Energy stocks led the losers on Bay Street, falling by about 4.8%. OPTI Canada (OPC.TO) dropped by more than 9% on the session. Baytex Energy (BTE.UN.TO) fell by 7.7%. Crude oil closed down 9 cents a barrel for the day but down more than $13 a barrel for the week.

The heavily weighted financial sector fell about 1.25% on Friday. Fairfax Financial (FFH.TO) dropped by more than 9%.

The gold index was the largest gainer, adding more than 4% to recoup some of its recent losses. ING Canada (IIC.TO) added 6.75% for the session. The rise in gold stocks came despite the fact that the precious metal closed down $4.50 an ounce.

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Posted in Categories: Canada, Releases, Stocks, USA.

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