TSX hits one-week high, led by banks, miners

Wed Nov 21, 2012 5:02pm EST
 
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By Claire Sibonney

TORONTO (Reuters) - Canada's main stock index rose for a fourth straight session on Wednesday to hit a one-week high, led up by financial stocks in a buildup to bank earnings and by gains in commodity shares on firm prices for oil and precious metals.

The financial sector, the biggest on the index, advanced 0.6 percent on expectations of strong fourth-quarter bank earnings.

Bank results will be released over the next two weeks, with Royal Bank of Canada RY.TO the first to report, on November 29. Analysts expect a year-over-year profit gain of more than 10 percent for the group, driven by stronger capital markets-related results.

"The view is that you're going to have a pretty reasonable quarter, and that is being reflected in the price movement we've seen in the past several days," said Bob Gorman, chief portfolio strategist at TD Waterhouse.

Bank of Nova Scotia BNS.TO was the most heavily weighted gainer on the index, rising 0.9 percent to C$54.25, followed by Toronto-Dominion Bank TD.TO, up 0.6 percent at C$80.66. Royal Bank of Canada RY.TO added 0.3 percent to C$57.59.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 53.78 points, or 0.45 percent, at 12,100.06. Nine of its 10 main sectors were positive. Health care shares were off 0.2 percent.

The index had opened lower after news that Greece's international lenders failed to strike a deal to release emergency aid, but politicians tried to give reassurance that a deal was close. <MKTS/GLOB>

Trading volume was healthy despite a holiday-shortened week in the United States. U.S. stock markets will be closed on Thursday for Thanksgiving and will close early, at 1 p.m. (1800 GMT), on Friday.   Continued...

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