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CANADA STOCKS-Fed speculation, commodity price drop weigh on TSX

* TSX falls 32.35 points, or 0.24 percent, to 13,326.04

* Six of the 10 main index sectors advance

* Rona jumps after posting profit rise

By John Tilak

TORONTO, Nov 12 (Reuters) - Canada's main stock index

dropped on Tuesday as worries that the U.S. Federal Reserve

might cut back its stimulus program weighed on commodity prices,

hitting heavyweight energy and materials shares.

Investors also digested news that China's ruling party

pledged to let markets play a "decisive" role in allocating

resources as it unveiled a reform agenda for the next decade.

Meanwhile, a slew of economic data unveiled last week,

including robust U.S. jobs numbers, continued to spark fears

that the Fed might scale back its stimulus measures.

Fed Vice Chair Janet Yellen is expected to be nominated in a

U.S. Senate Banking Committee hearing on Thursday to replace Ben

Bernanke at the helm of the central bank.

"The market is waiting for (Yellen) to take over and see

what she's going to do about the economy," said Ron Meisels,

technical analyst and president of Phases & Cycles, who does not

expect any dramatic change in Fed policy.

The Canadian market declined for a second straight session

after jumping about 4 percent in the past month.

"Toronto had a fantastic rise from early October, and some

of the stocks here in Canada are getting a little bit tired,"

Meisels said. "I will not be surprised if there's a bit of a


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

closed down 32.35 points, or 0.24 percent, at


Six of the 10 main sectors on the index were higher.

Financials, the index's weightiest sector, slipped slightly,

with Royal Bank of Canada losing 0.3 percent to C$69.88.

Shares of energy producers gave back 0.9 percent. In the

group, Canadian Natural Resources Ltd fell 1.2 percent

to C$32.13, and Suncor Energy Inc dropped 0.7 percent to


Gold miners dropped 1.8 percent. Goldcorp Inc

declined 1.8 percent to C$25.15, and Barrick Gold Corp

shed 0.4 percent to C$18.93.

Shoppers Drug Mart Corp reported slightly lower

quarterly net income due in part to charges from its pending

acquisition by grocer Loblaw Cos Ltd. That didn't stop

shares of the pharmacy chain from climbing 0.5 percent to


Shares of Rona Inc jumped 3.7 percent to C$12.45

after the home improvement chain reported a bigger quarterly

profit as it cut costs, but competition and cooling new home

construction hurt sales.