CANADA STOCKS-TSX firms as bank shares show strength

Tue Jun 2, 2009 10:42am EDT
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* TSX up 8.05 points after falling at open

* Bank shares lead index's quick turnaround

* Energy shares limit gain with 1.4 pct drop (Adds details and comments)

By Frank Pingue

TORONTO, June 2 (Reuters) - Toronto's main stock index was slightly higher on Tuesday morning after a soft start as bank shares extended a recent rally and more than offset the drag lower oil prices were having on energy shares.

A 1 percent jump in the financials group, which makes up about 33 percent of the index, was credited with the turnaround in the TSX, which fell 89 points early in the session.

Investors continued to flock to the financials index after most Canadian banks reported quarterly results last week that were better than expected.

Shares of Toronto-Dominion Bank TD.TO rose 1 percent to C$57.26, while Royal Bank of Canada RY.TO shares were up 0.6 percent at C$44.92.

But the overall index's gain was limited by a 1.4 percent drop in the energy sector, which was down in tandem with a skid in oil prices.   Continued...