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CANADA STOCKS-Resource stocks weigh on TSX, investors cautious ahead of Fed

Published 2016-03-14, 05:16 p/m
© Reuters.  CANADA STOCKS-Resource stocks weigh on TSX, investors cautious ahead of Fed
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* TSX ends down 44.46 points, or 0.33 percent, at 13,477.54
* Seven of the TSX's 10 main groups retreat

By Alastair Sharp
TORONTO, March 14 (Reuters) - Canada's main stock index fell
on Monday as lower commodity prices weighed on miners and energy
companies and investors took a cautious approach ahead of a U.S.
Federal Reserve policy decision.
U.S. crude oil prices CLc1 fell about 3 percent after Iran
quashed hopes of a quick deal by major producers to freeze
output and oversupply concerns resurfaced after a six-week
recovery in prices. O/R
"It's a story about oil, and then we're waiting for the Fed
later this week," said John Stephenson, president at Stephenson
& Company Capital Management.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended down 44.46 points, or 0.33 percent, at
13,477.54.
Seven of the index's 10 main groups ended in negative
territory, with industrial and consumer stocks rising.
Energy stocks slipped 0.8 percent, with pipeline operator
Enbridge Inc ENB.TO off 2.4 percent to C$50.01 and Crescent
Point Energy Co CPG.TO down 2.3 percent at C$17.91.
Veresen Inc VSN.TO slumped 7 percent to C$7.93 after its
application to build an LNG export terminal and natural gas
pipeline was rejected.
The materials group, which includes precious and base metals
miners and fertilizer companies, lost 1.3 percent.
The U.S. Fed, which ends its two-day policy meeting on
Wednesday, has said it is on track to raise rates gradually in
2016, but that doing so will hinge on the health of the economy.
Recent data has shown above-forecast jobs creation but wage
growth remains a concern.
"No one believes they are going to raise four times from
here," Stephenson said, referring to current guidance that he
expects will likely be trimmed back.
Gold miners retreated as prices for the precious metal
slipped from last week's 13-month high ahead of the Fed meeting
and another key policy decision from the Bank of Japan. GOL/
Goldcorp Inc G.TO lost 3 percent to C$21.01 and Barrick
Gold Corp ABX.TO was off 1.6 percent at C$18.15.
Canadian home prices rose in February, driven by a surge in
the already strong Vancouver market, data showed, in the latest
sign of a growing divide in the country's real estate sectors.

Bombardier shares were flat at C$1.16 after the federal
government made clear it would not announce plans to help the
struggling plane maker before the March 22 budget.

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