TSX falls, weaker financials offset gains for resource stocks

Thu Dec 3, 2015 11:39am EST
 
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TORONTO (Reuters) - Canada's main stock index retreated on Thursday as some of its biggest bank shares fell despite reporting profit growth, while railway and pipeline stocks also weakened, offsetting overall gains for resource stocks.

Toronto-Dominion Bank (TD.TO: Quote) fell 0.9 percent to C$54.57 and Canadian Imperial Bank of Commerce (CM.TO: Quote) dropped 1.2 percent to C$99.58 after reporting fourth quarter results.

The overall financials group retreated 0.5 percent as analysts were concerned about industry growth prospects in the face of slumping oil prices.

Canadian National Railway Co (CNR.TO: Quote) dipped 0.7 percent to C$77.85, while Canadian Pacific Railway (CP.TO: Quote) was down 1.3 percent at C$188.41.

At 11:08 a.m. EST (1608 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE fell 38.73 points, or 0.29 percent, to 13,425.09, with six of the index's 10 main groups in negative territory.

Toronto-Dominion Bank on Thursday reported higher quarterly profit with growth in its domestic retail and capital markets divisions offsetting concerns about the impact of depressed oil prices.

Also on Thursday, Canadian Imperial Bank of Commerce posted a fourth-quarter profit that beat market expectations, helped by growth in its retail banking and capital markets segments, and raised its quarterly dividend.

The materials group rose 0.7 percent, led by gold stocks after additional easing measures from the European Central Bank helped the price of gold bounce from near six-year lows.

Goldcorp Inc (G.TO: Quote) rose 2.5 percent to C$16.19, while Barrick Gold Corp (ABX.TO: Quote) was up 2.4 percent at C$10.14.   Continued...

 
A TMX Group sign, the company that runs the Toronto Stock Exchange (TSX), is seen in Toronto, June 23, 2014. REUTERS/Mark Blinch