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CANADA STOCKS-TSX falls as financials weigh, Fed rally fades

Published 2016-09-23, 10:52 a/m
© Reuters.  CANADA STOCKS-TSX falls as financials weigh, Fed rally fades

(Adds details on specific stocks, updates prices)

* TSX down 43.03 points, or 0.29 percent, at 14,754.15

* Half of the TSX's 10 main groups move lower

TORONTO, Sept 23 (Reuters) - Canada's main stock index fell on Friday as investors pulled back after a strong rally this week following the U.S. Federal Reserve's decision to hold rates steady and more cautious outlook.

The five most influential weights on the index were its biggest banks. The financial sector jumped in the prior two sessions after the Fed left the door open for a rate hike in December even as it indicated a less aggressive rise in rates next year and in 2018.

At 10:21 a.m. EDT (1421 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 43.03 points, or 0.29 percent, at 14,754.15.

It remains on track for a 2 percent weekly gain.

Royal Bank of Canada RY.TO fell 0.6 percent to C$81.42 and Bank of Nova Scotia BNS.TO lost 0.7 percent to C$70.60.

The financials group, which accounts for 35 percent of the index's weight, slipped 0.6 percent overall.

Seven Generations Energy Ltd VII.TO Ltd fell 2.7 percent to C$30.85 after Paramount Resources Ltd POU.TO said it had sold 24.7 million shares of the oil and natural gas developer. energy group retreated 0.3 percent overall, with oil prices little changed as traders eyed talks next week among producers about possible coordination to prop up prices. O/R

Teck Resources Ltd TCKb.TO advanced 5.7 percent to C$23.54. The stock recently hit a two-year high, boosted by a rally in prices for metallurgical coal.

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The materials group, which includes precious and base metals miners and fertilizer companies, was unchanged overall.

Industrials fell 0.3 percent.

Canadian manufacturing sales in July edged up by 0.1 percent as strength in the food, energy and metals industries was offset by weakness in the machinery and aerospace sectors, Statistics Canada data indicated on Friday.

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