CANADA STOCKS-TSX edges higher on resources but banks weigh

Thu Dec 2, 2010 10:27am EST
 
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   *TSX up 31.21 points, or 0.24 percent, at 13,179.56
 *Financials down as TD, CIBC earnings weigh
 *Gildan down 7 pct
 (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Dec 2 (Reuters) - Toronto's main stock index edged
higher on Thursday morning as strength in commodity prices
boosted resource issues, but gains were tempered by lower
earnings from Toronto-Dominion Bank (TD.TO: Quote) and Canadian
Imperial Bank of Commerce (CM.TO: Quote).
 Leading the list of advancers was Canadian Natural
Resources Ltd (CNQ.TO: Quote), which climbed 1.1 percent to C$41.75.
The independent oil explorer forecast a higher capital budget
for 2011 and said it would use about 45 percent of the spending
for long-term growth. [ID:nSGE6B108H]
 Also helping to lift the market was Teck Resources
(TCKb.TO: Quote), up 2.1 percent at C$53.59, and Talisman Energy
TLM.TO, which climbed 1.4 percent to C$20.11 as copper, gold
and oil prices edged higher. [MET/L] [O/R]
 John Kinsey, portfolio manager at Caldwell Securities Ltd,
said resource issues were getting a boost from the lingering
effects of Wednesday's upbeat Chinese manufacturing data.
[ID:nTOE6B004C]
 "Commodities feed off of the Chinese economy and the
numbers of out China yesterday were encouraging and that kind
of put everything up," he said.
 TD, Canada's second-biggest lender, and CIBC, the country's
fifth-biggest bank, reported mixed fourth-quarter results on
Thursday as a sharp drop in trading revenue offset stronger
retail banking results. [ID:nN02201701]
 TD shed 2.1 percent to C$73.75, while CIBC sank 0.6 percent
to C$80.56, helping to push down the index's financials sector
by 0.2 pct.
 "Investors didn't really like the Commerce or TD earnings.
... that kind of pushed all the financials down," Kinsey said.
 At 10:09 a.m. (1509 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 31.21 points, or 0.24
percent, at 13,179.56. The index rose as high as 13,181.50, its
highest level since early September 2008.
 The index opened down 2.96 points at 13,145.39.
 Also on the downside was Gildan Activewear Inc (GIL.TO: Quote),
which was one of the top net losers on the market and down 7.1
percent at C$29.21. The clothing maker reported a 34 percent
rise in profit and forecast higher 2011 sales, but its
financial forecasts fell short of expectations.
 [ID:nSGE6B10AC]
 Bombardier Inc (BBDb.TO: Quote), one of the most heavily traded
stocks on the market, fell 3.6 percent to C$4.60. The
civil-aircraft and train maker reported a drop in quarterly
profit and weak revenue. It said the aerospace environment
remained difficult. [ID:nSGE6B108X]
 ($1=$1.01 Canadian)
 (Reporting by Jennifer Kwan; editing by Peter Galloway)