CANADA STOCKS-TSX steady as Fed fears weigh in light trade


* TSX falls 3.32 points, or 0.02 percent, to 13,375.01

* Five of 10 main sectors decline

* Gold mining shares tumble 2 percent

* Sears Canada soars on news of sale of properties

By John Tilak

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

little changed on Monday as any positive sentiment from Friday's

robust U.S. jobs report was offset by concerns that the U.S.

Federal Reserve might begin to pull back from its easy monetary

policy sooner than expected

Those worries weighed on the price of bullion, sending

shares of gold producers down more than 2 percent and helping

overshadow gains in the financial and energy sectors.

With the Remembrance Day holiday in effect in Canada and the

Veterans Day holiday in the United States, trading volumes were


Investors were still chewing on the non-farm payrolls report

that showed on Friday that the world's largest economy added

more jobs than expected in October.

"The U.S. Federal Reserve is going to stay longer with lower

rates until such time as they are absolutely certain that the

economy is on a firm track," said Irwin Michael, portfolio

manager at ABC Funds, who added that it was "a very, very quiet


Canadian investors should be prepared for a high level of

volatility, including in the gold-mining sector, until the Fed

takes its next steps, he added.

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

was down 3.32 points, or 0.02 percent, at 13,375.01.

About 50 million shares changed hands at mid-morning,

compared with an average daily volume of about 294 million

shares in October, according to market operator TMX Group.

Five of the 10 main sectors on the index were lower.

Shares of financial companies gained 0.2 percent, with

Toronto Dominion Bank rising 0.2 percent to C$96.82.

Higher oil prices pushed up energy stocks, which were up 0.2

percent. Suncor Energy Inc climbed 0.4 percent to


Talisman Energy Inc, which said on Friday it would

sell some natural gas assets, jumped 2 percent, to C$12.67.

But gold-mining shares overall fell 2.1 percent. Goldcorp

Inc lost 1.7 percent to C$25.27, and Barrick Gold Corp

gave back 1.6 percent to C$18.77.

In other coporate 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 0.5 percent to C$117.44.

Sears Canada Inc soared 6.6 percent to C$17.05

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

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

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