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CANADA STOCKS-TSX falls as gold miners, defensive sectors decline

Published 2016-11-14, 11:29 a/m
© Reuters.  CANADA STOCKS-TSX falls as gold miners, defensive sectors decline
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* TSX falls 27.03 points, or 0.19 percent, to 14,528.38

* Six of the TSX's 10 main groups were lower

TORONTO, Nov 14 (Reuters) - Canada's main stock index fell on Monday as lower gold prices weighed on mining shares, while defensive sectors also declined, offsetting gains for financials as bond yields surged.

The most influential movers on the index included gold companies. Barrick Gold Corp ABX.TO fell 3.4 percent to C$19.38 and Agnico Eagle Mines Ltd AEM.TO declined 3.5 percent to C$55.20.

Spot gold XAU= fell nearly 1 percent to a five-month low as the dollar and U.S. Treasury yields strengthened on expectations that U.S. President-elect Donald Trump will boost spending. GOL/

The materials group, which includes precious and base metals miners and fertilizer companies, lost 0.9 percent.

Defensive sectors, such as utilities, telecom and consumer staples, which have benefited from a low interest rate environment, also lost ground.

The consumer staples group fell 1.2 percent, with Alimentation Couche Tard Inc ATDb.TO down 2.7 percent at C$61.70.

At 10:59 a.m. EDT (1559 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE fell 27.03 points, or 0.19 percent, to 14,528.38.

Six of the index's 10 main groups were lower.

Toronto-Dominion Bank TD.TO rose 1.4 percent to C$62.51, while Manulife Financial Corp MFC.TO gained 3.0 percent to C$23.10 and the overall financials group was up 0.7 percent.

Gains for financials came as global bond yields surged, with investors betting that Trump will pursue policies that will trigger higher inflation.

Canada's 10-year government bond yield touched its highest in 11 months at 1.591 percent. Just one and a half months ago it hit a record low at 0.904 percent.

Higher bond yields improve the net interest margin for banks and reduce the value of insurance companies' liabilities.

Amaya Inc's AYA.TO former chief executive, David Baazov, has offered to buy the Canadian online gambling company in a deal valued at about C$3.48 billion. shares jumped 16.8 percent to C$21.42.

Gold Fields Ltd GFIJ.J said late on Sunday that it had made three successive takeover proposals jointly with Silver Standard Resources Inc SSO.TO for Canadian miner Kirkland Lake Gold Inc KLG.TO , confirming a Reuters report on Friday. Lake's shares rose 3.6 percent to C$8.33.

Energy stocks firmed 0.1 percent despite lower oil prices.

U.S. crude CLc1 prices were down 1.7 percent at $42.69 a barrel as the prospect of another year of oversupply and weak prices overshadowed chances that OPEC will reach a deal to cut output. O/R

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