TORONTO (Bloomberg) — Canadian stocks fell for a second day as shares of financial companies including Canadian Imperial Bank of Commerce declined before today’s interest rate decision from the US Federal Reserve.“There’s some repositioning going on in a quiet market before the Fed,” said David Cockfield, who helps manage $1.1 billion at Leon Frazer & Associates Inc. in Toronto. “We might get a little more direction after tomorrow.”

The Standard & Poor’s/TSX Composite Index slipped 21.40, or 0.2 percent, to 12,878.18 in Toronto. The drop in the index was limited as bullion producers such as Barrick Gold Corp. rallied alongside the price of the precious metal.

Canadian Imperial, Canada’s fifth-biggest lender by assets, fell 63 cents to C$96.25. Sun Life Financial Inc., the biggest insurer, slumped C$1.06 to C$50.23.

Brookfield Properties Corp. fell C$1.35 to C$44.60. The owner of New York’s World Financial Center plans to raise about $1.2 billion in a share sale to repay debt. The company also raised its earnings forecast for 2007 by as much as 17 percent on higher rents and increased occupancy levels. Additional shares may dilute existing stockholders.

An index of financial shares declined 0.4 percent.

The market’s “become too expensive — it’s becoming more difficult to find areas to re-invest,” said Michael Sprung, president of Sprung & Co. Investment Counsel in Toronto.

The S&P/TSX is trading on a price-to-earnings multiple of 16.3. Its multiple over estimated 2007 earnings rises to 16.6. That compares with a 2007 p/e of 16.1 for the S&P 500.

The Fed’s Open Markets Committee meets today to decide on whether to change interest rates. The central bank is expected to leave its target rate for overnight loans unchanged at 5.25 percent for a fourth straight meeting. The Fed began a series of 17 straight rate increases in June 2004 that brought the so- called federal funds target to 5.25 percent.

Barrick Gold, the world’s biggest producer, was up 21 cents at C$34.91. Goldcorp Inc., Canada’s second-largest miner of the precious metal, advanced 17 cents to C$33.79.