CANADA STOCKS-TSX declines ahead of Fed statement

Wed Oct 29, 2014 11:00am EDT
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* TSX down 39.16 points, or 0.27 percent, at 14,585.09
    * Seven of 10 main index sectors decline
    * Horizon North plunges 33 percent after results, outlook

    By John Tilak
    TORONTO, Oct 29 (Reuters) - Canada's main stock index fell
on Wednesday as investors  awaited the Federal Reserve's
statement on monetary policy later in the day.
    The U.S. central bank is expected to announce the end of its
asset-buying program and assure markets that it does not plan to
raise interest rates anytime soon. 
    Shares of energy producers, which have had a rocky ride in
recent weeks, jumped with the price of oil. But those gains
offset by weakness in the gold-mining and financial sectors.
    The Toronto stock market has been hit over the past month by
worries about Fed policy, choppy oil prices and sluggish global
economic growth.
    "We think the Fed will want to keep interest rates low for
longer than we expected," said Irwin Michael, portfolio manager
at ABC Funds. "The (market) psychology is slowly but surely
    He sees opportunities in the Canadian energy and mining
sectors. "We think the resource side is oversold and possibly
due for a bit of a snapback."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 39.16 points, or 0.27 percent, at 14,585.09.
Seven of the 10 main sectors on the index were in the red.
    The gold-mining sector fell 1.7 percent, with the price of
bullion declining. Barrick Gold Corp shed 2.7 percent
to C$14.70, and Goldcorp Inc was down 1.8 percent at
    Financials, the index's most heavily weighted sector,
slipped slightly. Royal Bank of Canada gave back 0.5
percent to $79.08.
    Shares of energy producers climbed 1 percent, mirroring
similar gains in the price of oil. Suncor Energy Inc 
advanced 1.2 percent to C$39.48 and had the biggest positive
influence on the market. Canadian Natural Resources Ltd 
added 0.5 percent to C$38.94.
    Horizon North Logistics Inc lost a third of its
value, to C$3.06, after the company reported results and gave an
outlook late on Tuesday. 

 (Editing by W Simon)