CANADA STOCKS-TSX falls to near four-week low as investors raise cash

Updates at market close

By Fergal Smith

Jan 13 (Reuters) - Canada's main stock index fell to a near four-week low on Monday as a bond market sell-off continued and investors freed up cash to take advantage of potential volatility emanating from the expected imposition of U.S. trade tariffs.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 231.41 points, or 0.9%, at 24,536.32, its lowest closing level since Dec. 19.

"We're just getting ahead of earnings season, we're getting ahead of inauguration, there's still a high level of uncertainty around what's coming next," said Mike Archibald, a portfolio manager at AGF Investments.

"We have been raising a little bit of cash across the portfolios and have been doing that for a while just to have dry powder for when January 20th comes and beyond."

U.S. President-elect Donald Trump is due to take office on Jan. 20 and has threatened to impose steep tariffs on trading partners, including a 25% tariff on imports from Canada.

Canada sends about 75% of its exports to the United States, including oil.

Energy fell 1.8% despite a seven-month high for the price of oil CLc1, with shares of Canadian Natural Resources Ltd down 3.9%.

The materials group, which includes metal mining shares and fertilizer companies, ended 1.6% lower.

Gold prices dipped as the U.S. dollar soared to a more than two-year high against a basket of major currencies. The U.S. 10-year yield, a benchmark for borrowing costs globally, touched a 14-month high.

The utilities sector, which includes many high-dividend-paying stocks that become less attractive when bond yields rise, fell 1.2% and technology was down 1%.

"Until you get a cooling in the movement of bond yields, I think stocks are going to be fairly volatile," Archibald said.

(Reporting by Nikhil Sharma in Bengaluru; Editing by Sahal Muhammed and Nia Williams)

((Nikhil.Sharma@thomsonreuters.com;))