CANADA STOCKS-TSX edges lower in thin trade as Fed fears return

Reuters

* TSX falls 19.94 points, or 0.15 percent, to 13,358.39

* Seven of 10 main sectors decline

* Sears Canada soars on news of sale of properties

* Air Canada up after price target rise, Friday's results

By John Tilak

TORONTO, Nov 11 (Reuters) - Canada's main stock index

slipped on Monday in light yet choppy trading as increasing

concern the U.S. Federal Reserve might begin to pull back from

its easy money policy sooner rather than later weighed on energy

and mining stocks.

Those worries were a drag on the price of bullion, sending

down shares of gold producers and helping overshadow gains in

the industrial and information technology sectors.

Investors pondered positive export data from China and a

U.S. non-farm payrolls report that showed on Friday that the

world's largest economy added more jobs than expected in

October.

With the Remembrance Day holiday in Canada and Veterans Day

in the United States, trading volumes were light

"Today's action is extremely muted as a number of markets

are closed," said Elvis Picardo, a strategist and vice president

of research at Global Securities in Vancouver.

"Canadian investors would do well to stay in the market

because it looks like the TSX is trying to make up for lost

ground," he said, adding that the resource groups offer good

value, despite the recent volatility.

Having gained about 3.6 percent in the last month, the

Toronto Stock Exchange's S&P/TSX composite index

closed down 19.94 points, or 0.15 percent, at 13,358.39 on

Monday.

About 212 million shares changed hands, compared with an

average daily volume of about 294 million shares in October,

according to market operator TMX Group.

Seven of the 10 main sectors on the index were in the red.

Higher oil prices failed to push up energy stocks, which

shed 0.4 percent. Suncor Energy Inc slipped 0.3 percent

to C$36.76, and Canadian Natural Resources Ltd dropped

1.6 percent to C$32.51.

Talisman Energy Inc, which said on Friday it would

sell some natural gas assets, added 0.9 percent,

to C$12.53.

Gold-mining shares overall fell slightly. Goldcorp Inc

lost 0.2 percent to C$25.66, and Barrick Gold Corp

gave back 0.3 percent to C$19.01.

In other news, a Canadian National Railway Co train

derailed in northern Ontario this weekend, and an estimated 40

carloads of grain left the tracks, the Transportation Safety

Board of Canada said. Nevertheless, the

company's shares gained 0.3 percent to C$117.21.

Sears Canada Inc soared 4.4 percent to C$16.70

after it said it would sell its 50 percent stake in eight

Canadian properties for about C$315 million ($300.30 million).

After reporting market-topping quarterly results on Friday,

Air Canada extended its gains on Monday, jumping 10.2

percent to C$6.60. Several analysts also increased their price

targets on the stock.

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