CANADA STOCKS-TSX falls as investors brace for central bank decisions

(Updates to close)

By Nivedita Balu

Dec 8 (Reuters) - Canada's main stock index closed lower on Monday, weighed down by metal and mining shares and as investors booked profits while awaiting monetary policy decisions in the U.S. and Canada this week.

Toronto's S&P/TSX Composite Index closed down 141.44 points, or 0.45% , at 31,169.97. The benchmark index posted a fresh record high on Thursday but ended the week lower. The TSX is up over 25% for the year and looks to post its best year since 2009. Markets have cemented expectations that the Bank of Canada will hold rates at its December meeting following stronger-than-expected jobs data, with the central bank having eased the borrowing rate by one percentage point since the start of the year. The U.S. Federal Reserve is widely expected to cut interest rates at the Tuesday-Wednesday meeting, with markets pricing in an 86% chance of a quarter-point cut, according to LSEG data.

"Investors want to take some profits off the table and lock in some gains," said Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James.

"The next week or so we'll probably get more selling pressure and then we'll probably get a year-end Santa Claus rally to end the year on a higher note as investors look into 2026," Dehal said.

The materials group, which includes metal mining shares, fell 1.5%, tracking metal prices.

The communication services index declined 1.2% with Rogers and BCE dropping 1.4% and 0.6% respectively.

On the flipside, technology stocks gained 0.7%. Heavyweight data-center infrastructure provider Celestica (CLS) added 5.1%, while cybersecurity company BlackBerry rose 2.3%. Transcontinental shares jumped 19% after agreeing to sell its packaging unit to ProAmpac Holdings, valuing it at C$2.22 billion ($1.61 billion), including debt. (Reporting by Avinash P in Bengaluru; Editing by Vijay Kishore and Rod Nickel)