CANADA STOCKS-TSX falls as valuation and U.S. rate hike concerns weigh
(Adds analyst comments and details on index's performance, updates prices)
* TSX ends down 73.58 points, or 0.5 percent, at 14,703.44
* Nine of the TSX's 10 main groups end lower
By Fergal Smith
TORONTO, Aug 16 (Reuters) - Canada's main stock index fell on Tuesday as worries about elevated valuations and higher U.S. interest rates offset a rally in oil prices.
The index has rallied 27.5 percent since hitting a three-year low in January, helped by a rebound in commodity prices and low global interest rates. Last week it reached a 13-month high of 14,855.69, raising concerns that the rally might be overdone.
"We would say that the market has become more expensive and that leads us to become more defensive," said Youssef Zohny, portfolio manager at StennerZohny Investment Partners.
The combination of higher valuations and possible interest rate increases may lead to a "correction in equity markets," Zohny added.
Traders raised bets on a Federal Reserve interest rate hike before year-end after New York Fed President William Dudley said an increase in September was possible. Continued...