CANADA STOCKS-TSX ends flat with golds up, banks down

Fri Oct 16, 2009 5:26pm EDT
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 * TSX closes at 11,504.76, up 0.6 pct for week
 * Bank of America disappointment hurts banks
 (Adds details)
 By Ka Yan Ng
 TORONTO, Oct 16 (Reuters) - Toronto's main stock index
closed flat on Friday as Toronto Dominion Bank (TD.TO: Quote) and
other banks fell after Bank of America Corp (BAC.N: Quote) reported a
quarterly loss, but gold-mining shares provided some lift.
 With the price of gold firming, four gold-mining shares
claimed spots in the top 10 most notable advancers, with
Goldcorp (G.TO: Quote) gaining 1.4 percent to C$44.03.
 Yamana Gold (YRI.TO: Quote) rose 3.5 percent to C$12.90, while
Kinross (K.TO: Quote) added 1.5 percent to C$24.01. Agnico-Eagle
(AEM.TO: Quote) was up 1.6 percent at C$73.83.
 The weakness in some of the banks stemmed from market
disappointment over a bigger than expected loss at Bank of
America, which was a setback for investors who had been wowed
by some strong U.S. corporate earnings earlier in the week.
 Toronto-Dominion Bank (TD.TO: Quote) was one of the top decliners,
falling 1 percent to C$65.24, while Bank of Nova Scotia
(BNS.TO: Quote) lost 0.7 percent to C$46.64.
 Shares of Royal Bank of Canada (RY.TO: Quote) clawed back from
early weakness to close up 0.16 percent at C$56.05.
 The S&P/TSX composite index .GSPTSE finished at
11,504.76, up 0.25 of a point, after dropping nearly 100 points
early in the session.
 "I think one conclusion you can draw from the action today
and the past few days is that dips continue to be bought," said
Elvis Picardo, analyst and strategist at Global Securities in
Vancouver. "We were down quite substantially but we've
recovered to close flat." 
 Adding to investor caution was an unexpected drop in U.S.
consumer sentiment for October. [ID:nN16384321]
 The economic outlook continues to be a key concern, and the
Bank of Canada will give its views next week. Data on Friday
showed Canadian consumer prices fell in September from a year
earlier and while some of the details were mixed, the lack of
inflation is likely to permit the central bank to hold the line
on interest rates when it announces policy next Tuesday, and to
repeat its conditional pledge that rates will stay unchanged at
0.25 percent through mid-2010. [ID:nN16340697]
 Among most active issues on Friday was Timminco Ltd
TIM.TO, which rose as much as 38 percent after it said it
will increase silicon metal production at its Becancour,
Quebec, plant, the final stage of its return to full capacity
after production was curtailed in April on waning demand.
 Shares in Timminco closed up 36.2 percent at C$1.73.
 The main index finished the week up 0.6 percent, its second
weekly rise in a row.
 ($1=$1.04 Canadian)
 (Editing by Peter Galloway)