CANADA STOCKS-TSX falls as Fed speculation hurts commodity prices

Wed May 18, 2016 5:33pm EDT
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(Adds portfolio manager comments, updates prices)

* Index ends down 91.09 points, or 0.65 percent, at 13,826.01

* Five of the index's 10 main groups ended lower

By Fergal Smith

TORONTO, May 18 (Reuters) - Canada's main stock index retreated on Wednesday as mining and energy stocks fell, pressured by lower commodity prices after the U.S. Federal Reserve signaled it could raise interest rates next month.

The index has rallied 20 percent from an almost 3-1/2-year low in January, helped by a rebound in commodity prices. It touched a nearly seven-month high on Tuesday, just short of the 14,000 threshold.

The market got too complacent about the prospect of a Fed rate hike, said Steve Belisle, senior portfolio manager at Manulife Asset Management, who expects financial stocks to outperform some other sectors, particularly materials, if the Fed does tighten policy.

The materials group, which includes precious and base metals miners and fertilizer companies, tumbled 5.8 percent, including deep losses for gold stocks.

Barrick Gold Corp slumped 8.2 percent to C$22.94, while Goldcorp Inc was down 7.1 percent at C$22.15.   Continued...