CANADA STOCKS-TSX declines as TD, CIBC slip after results

Thu Aug 28, 2014 4:39pm EDT
 
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* TSX down 44.48 points, or 0.29 percent, at 15,558.17
    * Six of 10 main index sectors decline
    * TD slips 0.8 percent, CIBC falls 2.2 percent

    By John Tilak
    TORONTO, Aug 28 (Reuters) - Canada's main stock index fell
on Thursday as shares of Toronto Dominion Bank and
Canadian Imperial Bank of Commerce weakened after the
two lenders reported quarterly results. 
    Bank shares had a strong run-up before their earnings and
portfolio managers said that expectations may have gotten ahead
of themselves.
    News of escalating tensions in Ukraine was another drag,
with Ukrainian President Petro Poroshenko saying that Russian
forces had entered his country and the military conflict was
worsening after Russian-backed separatists swept into a key town
in the east. 
    Investors also processed data showing a
stronger-than-expected rebound in the U.S. economy in the second
quarter. 
    "Geopolitics is definitely an issue that could pop up as we
enter the fall," said Youssef Zohny, portfolio manager at
Stenner Investment Partners of Richardson GMP Ltd, which manages
about C$28.3 billion in assets.
    "The Canadian market has been on a hot streak, so it
wouldn't surprise us to see it cool down after such a strong
rally," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 44.48 points, or 0.29 percent, at
15,558.17. Six of the 10 main sectors on the index were in the
red.
    Financials, the index's most heavily weighted sector, gave
back 0.8 percent.
    TD shares lost 0.8 percent, to C$57.38, after the country's
second-biggest bank reported a stronger-than-expected quarterly
profit, boosted by gains at its core Canadian retail business.
 
    CIBC's stock shed 2.2 percent to C$103.23 after the lender
reported a higher third-quarter profit, helped by strong gains
at its wealth management and investment dealer divisions.
 
    Shares of energy producers were down slightly, with Talisman
Energy Inc falling 1.7 percent to C$10.91 and Canadian
Natural Resources Ltd declining 0.1 percent to C$46.72.

 (Editing by Meredith Mazzilli and Chizu Nomiyama)