TSX bounces back to end higher as financials rise

Mon Oct 15, 2012 5:28pm EDT
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By Cameron French

TORONTO (Reuters) - Canada's main stock index rose slightly on Monday, rebounding from five-week lows earlier in the session as commodity stocks trimmed early losses and financial shares pushed higher on robust U.S. bank earnings and economic data.

Stronger-than-expected results at U.S. No. 3 bank Citigroup Inc (C.N: Quote), combined with better-than-expected U.S. retail sales, gave a charge to the financials subgroup, which ended the session up 0.56 percent, rebounding from a slide last week.

Royal Bank of Canada (RY.TO: Quote), Canada's largest bank, rose 0.7 percent to C$57.24, while insurer Manulife Financial (MFC.TO: Quote) gained 1.5 percent to C$12.03.

Seven of the TSX's 10 subgroups rose during the session.

Gold miners and energy producers were notable exceptions. They ended slightly lower but up sharply from morning lows, following the lead of gold and oil prices.

"The energy stocks have been sort of bouncing around, and the metal stocks and gold stocks haven't done particularly well," said Paul Hand, managing director at RBC Capital Markets, pinning the early weakness in oil on weak sentiment from the overnight session.

"Europe's probably more pessimistic than we are here."

The energy sector ended down 0.1 percent, weighed down by Talisman Energy TLM.TO, which fell 0.55 percent to C$12.70, and Precision Drilling (PD.TO: Quote), down 0.8 percent at C$7.84.   Continued...

A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch