CANADA STOCKS-TSX ends strong week up, led by energy and bank stocks

Fri Nov 18, 2016 4:58pm EST
 
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(Adds portfolio manager comment, updates prices to close)

* TSX settles up 37.94 points, or 0.26 percent, at 14,864.03

* Index rises 2.1 pct on the week

By Alastair Sharp

TORONTO, Nov 18 (Reuters) - Canada's main stock index rose on Friday, closing out a strong week with boosts from energy and banking stocks as oil prices moved higher and investors reacted to rising bond yields.

The Toronto Stock Exchange's S&P/TSX composite index settled up 37.94 points, or 0.26 percent, at 14,864.03, with the energy group finishing up 1.1 percent and financial stocks adding 0.6 percent.

"Banks look like they are trading at average valuations, but if you believe that the yield curve is going to steepen and rates are going to go up you'd expect a pick up in their earnings," said Manash Goswami, a portfolio manager at First Asset Investment Management Inc.

Toronto-Dominion Bank rose 0.8 percent to C$63.27 and Royal Bank of Canada added 0.5 percent to C$82.27.

Goswami said that strong overall revenue and earnings growth so far in the third quarter, along with some improvement in economic data, suggested the index could push higher from here.   Continued...