(Updates throughout with market reaction and strategist comment)
* TSX up 7.78 points, or 0.05 percent, to 14,748.93
* Six of the TSX’s 10 main groups were down
By Solarina Ho
TORONTO, June 15 (Reuters) - Canada’s main stock index held steady on Monday, paring earlier losses, as sectors like the influential materials group, turned positive, offsetting a retreat by other groups including energy.
Hudson’s Bay Co was among the biggest gainers, surging 9.5 percent to C$26.28 after the Canadian department store operator said it was buying German chain Kaufhof from Metro for 2.8 billion euros ($3.2 billion).
The deal also includes an arrangement with Simon Property Group to buy at least 40 of Kaufhof’s properties for C$3.3 billion.
The overall consumer discretionary group remained lower, however, slipping 0.3 percent.
At 10:55 a.m. EDT (1455 GMT), the Toronto Stock Exchange’s S&P/TSX composite index rose 7.78 points, or 0.05 percent, to 14,748.93, after spending much of the morning session deep in the red.
Of the index’s 10 main groups, six were in negative territory, with declining issues still outnumbering advancing ones on the TSX by a 1.55-to-1 ratio on the downside.
The TSX was doing marginally better than the United States, where all three main indices were lower.
“There’s a generally risk-off trade happening here. The bond market’s rallying, the U.S. dollar’s rallying. Equities are selling off in general. It might be just some profit taking,” said John Johnston, chief strategist at Davis-Rea.
“We’re due for a correction in the stock market. And a correction to me is a one to two month period of weak prices, where you may get a decline of 10 percent or more. It’s a correction in a very expensive market.”
Perennial index heavy weight, Valeant Pharmaceuticals International fell 0.21 percent to C$281.65, dragging the health care group down about 1 percent.
Also weighing on the index was Canadian Natural Resources , which fell 1.30 percent to C$34.83. Energy shares were down 0.6 percent, tracking crude prices, which slid on a stronger greenback, United Nations talks on Yemen among other factors.
U.S. crude was down 0.7 percent to $59.56, while Brent crude lost 1.8 percent to $62.7.
On the upside, the overall financial sector rose a modest 0.1 percent, pulled higher by Toronto-Dominion Bank, which climbed 0.4 percent to 54.19.
Gold miners like Barrick Gold Corp rose 1.7 percent to C$14.09, helped by firmer gold prices. The overall materials group was up 0.4 percent.
Additional reporting by Alastair Sharp Editing by; W Simon