UPDATE 2-Canaccord posts loss, suspends div; stock falls

* Q2 loss of C$0.11/shr vs expectation of profit

* Q2 total revenue down 30 pct to C$110.8 mln

* Temporarily suspends quarterly dividend

* Shares fall 13.4 pct to C$5.50

(Adds details, comments from conference call, share price)

By Lynne Olver

TORONTO, Nov 6 (Reuters) - Investment dealer Canaccord Capital Inc (CCI.TO) said on Thursday it swung to a quarterly loss and that it had suspended its dividend as fallout from the credit crisis hurt its investment banking and private client businesses.

The company also detailed several charges that will hurt results in the next quarter.

Canaccord shares fell 13.4 percent to C$5.50 in early trading on the Toronto Stock Exchange.

The company, which announced 170 layoffs last week, or about 10 percent of its staff, said it lost C$5.4 million ($4.61 million), or 11 Canadian cents a share, in its second quarter ended Sept. 30. That compared with profit of C$12.4 million, or 26 Canadian cents a share, in the year-earlier period.

Analysts had expected a profit of 9 Canadian cents before items, according to Reuters Estimates.

The company plans to take charges for the staff cuts, a reserve against unsecured exposure to client losses, and other items totalling 22 Canadian cents a share in its financial third quarter, which will end Dec. 31.

The business outlook is not sunny, Chief Executive Paul Reynolds said on a conference call, adding that the company is braced for a downturn that could last 12 to 24 months.

Canaccord is suspending its dividend, and it will evaluate the dividend policy quarterly "as we monitor the market environment and our business activity," Reynolds said.

Vancouver, British Columbia-based Canaccord has operations in Canada, Britain and the United States.

Reducing its workforce was the most important move the company took to cut costs, Reynolds said.