CANADA STOCKS-Fed fears, commodities shares take TSX lower

Mon Jul 29, 2013 11:19am EDT

* TSX falls 29.27 points, or 0.23 percent, to 12,618.63
    * Seven of 10 main sectors advance
    * HBC jumps about 7 percent after Saks deal
    * Gold miners slip with price of bullion

    By John Tilak
    TORONTO, July 29 (Reuters) - Canada's main stock index
slipped on Monday as investors worried about the U.S. Federal
Reserve's plans for its stimulus program, hurting shares of
natural resource companies.
    Concerns about the outlook for monetary policy overshadowed
a jump in shares of Hudson's Bay Co after the retailer
said it planned to buy Saks Inc. HBC is not a member of
the Toronto Stock Exchange's flagship S&P/TSX composite index
.
    The market fell for a fifth straight session after weakness
in shares of energy and materials companies. Commodity prices
moved lower, further weighing on the market.
    The Federal Reserve, the European Central Bank and the Bank
of England are likely to reaffirm their determination this week
to keep a lid on interest rates for a long time to come despite
signs that their economies are slowly on the mend.
 
    HBC shares climbed 6.9 percent to C$17.62 after the company
said it would acquire Saks in a $2.4 billion deal that would add
prime real estate to its portfolio and bring the luxury chain to
Canada. 
    The move follows a slew of deals in the Canadian retail
sector, including Loblaw Cos Ltd's C$12.4 billion
agreement to buy Shoppers Drug Mart Corp.
    "Many Canadian companies have looked after their money
management very well, have preserved some cash and are in a mood
of wanting to expand," said Fred Ketchen, director of equity
trading at ScotiaMcLeod.
    "Sometimes you have to be aggressive to increase your
competitive balance, and that's what the Bay is trying to do,"
he added.
    The S&P/TSX composite index fell 29.27 points, or
0.23 percent, at 12,618.63. 
    Though seven of the 10 main sectors on the index were
higher, sharp declines in resource stocks pushed the market into
the red.
    Shares of energy producers gave back 0.9 percent. 
    Canadian Natural Resources Ltd lost 2.2 percent to
C$31.49 and had the biggest negative influence on the market.
Encana Corp fell 2.1 percent to C$18.12.
    The materials sector, which includes mining stocks, stumbled
0.7 percent. Gold miners were down almost 1 percent.
    Barrick Gold Corp slipped 1.4 percent to C$18.02,
and Goldcorp Inc fell 0.2 percent to C$29.41.
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