TSX up almost 1 percent as Scotiabank shines, energy shares rise

Tue Mar 1, 2016 4:59pm EST
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By Alastair Sharp

TORONTO (Reuters) - Canada's benchmark stock index rose on Tuesday, led by financial shares after the country's third largest bank reported a rise in quarterly profit, while domestic data revealed the economy grew more than expected in the fourth quarter.

Bank of Nova Scotia (BNS.TO: Quote) jumped 5.8 percent to C$57.93 as the last of Canada's main banks to report quarterly earnings notched a 5 percent increase in net income and raised its dividend.

Royal Bank of Canada (RY.TO: Quote) added 1.6 percent to C$70.14, while Toronto-Dominion Bank (TD.TO: Quote) was up 1.7 percent at C$53.34. The overall financials group gained 2.2 percent.

"Everyone was predicting doom and gloom for the banks and look at them, four of the five raised dividends," said Allan Small, a senior investment advisor at HollisWealth.

"Yes, their loan loss provision are higher, but you've got to expect that," he said, noting that he added to positions in financials amid recent stock price weakness.

The energy sector gained 2 percent, in line with a move higher in oil prices. Suncor Energy Inc (SU.TO: Quote) rose 1.6 percent to C$33.62 [O/R]

TransCanada Corp (TRP.TO: Quote) fell 0.8 percent to C$49.27 after Quebec said it was seeking an injunction to compel the company's proposed Energy East oil pipeline to be reviewed under the province's environmental laws.

Maple Leaf Foods Inc (MFI.TO: Quote) jumped more than 8 percent to C$24.65 after the Canadian pork processor beat profit expectations on improved margins in its prepared meats business.   Continued...

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch