CANADA STOCKS-TSX flat as miners rise but energy shares drop

Wed May 14, 2014 5:01pm EDT

* TSX down 6.08 points, or 0.04 percent, at 14,673.73
    * Six of the 10 main index sectors decline
    * Sears Canada jumps as parent looks to sell stake

    By John Tilak
    TORONTO, May 14 (Reuters) - Canada's main stock index was
little changed on Wednesday as a gain for gold miners on higher
bullion prices was offset by weakness in the energy sector,
while healthcare shares fell with Valeant Pharmaceuticals after
it said it would sweeten its takeover offer for Allergan Inc. 
    While digesting news that the European Central Bank was
preparing a package of policy options for its June meeting,
including cuts in all its interest rates, the Toronto market
still appeared to be searching for catalysts that could propel
it higher. 
    It has climbed almost 8 percent already this year.
 
    "Overall there seems to be an element of sector rotation
going on," said Elvis Picardo, strategist at Global Securities.
"People are getting out of the high momentum names and turning
to less favored stocks, the ones that haven't been red hot in
recent months."
    "The attention is turning to groups that have not
participated (in the rally) or that have been the target of
disproportionate selloffs in recent months," he added. "By that
token, the gold group would certainly qualify."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 6.08 points, or 0.04 percent, at
14,673.73. Six of the 10 main sectors on the index were in the
red.
    Shares of energy producers lost 0.2 percent despite higher
oil prices. Encana Corp dropped 1 percent to C$24.84,
and Talisman Energy Inc fell 0.3 percent to C$11.60.
    The healthcare sector gave back 0.9 percent, with Valeant
Pharmaceuticals International Inc dropping 2.3 percent
to C$138.22. Valeant said on Tuesday it will sweeten its
unsolicited $47 billion takeover offer for drugmaker Allergan
. 
    But gold-mining stocks advanced 0.9 percent. Barrick Gold
Corp was up 0.6 percent at C$18.94, and Goldcorp Inc
 rose 1.4 percent to C$27.52.
    Shares of Sears Canada Inc jumped 3.4 percent to
C$16.30 after parent company Sears Holdings Corp said
it was looking to sell its 51 percent stake in the Canadian
retailer. 
    ($1=$1.09 Canadian)

 (Editing by Peter Galloway)
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