4 Min Read
(Corrects to show market rallied for fourth straight day, not fifth)
* TSX rises 82.43 points, or 0.65 percent to 12,716.91
* CIBC climbs on stronger-than-expected results
* Banks lead gains, financial sector up 1.8 percent
* Optimism about further Fed stimulus buoys sentiment
By Trish Nixon
TORONTO, Aug 31 (Reuters) - Toronto's main stock index rose for a fourth straight day on Wednesday, touching its highest point in nearly a month, as strong results from one of Canada's big banks helped lift the influential financial sector.
Canadian Imperial Bank of Commerce (CM.TO) was the most influential advancer, rising 3.9 percent to C$75.92. The lender reported a higher-than-expected profit on strong wealth management and markets-related revenue, and raised its dividend by 3.4 percent. [ID:nN1E77S1D7]
Royal Bank of Canada was up 1.9 percent at C$49.85, and Toronto Dominion Bank (TD.TO), which will report its quarterly earnings on Thursday, also rose 1.9 percent to C$76.88.
Bank of Nova Scotia (BNS.TO) added 1.6 percent to trade at C$54.38, extending gains from Tuesday when it reported strong results. [ID:nN1E77T07J]
Investors were also encouraged by a rise in global stocks, as hopes for more U.S. stimulus drove most risk assets higher, including economically-sensitive commodities like oil and metals. [MKTS/GLOB]
"Sentiment seems to be shifting a little more positively," said Greg Eckel, senior vice president at at Morgan Meighen & Associates.
"People are creeping back into the market, maybe taking a less pessimistic view."
At 12:20 p.m.(1620 GMT) The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 82.43 points, or 0.65 percent at 12,716.91. Earlier it touched a session high of 12,761.71, the strongest level since Aug. 4.
The 5-session rally has helped the index recover most of the dramatic losses seen in early August, when concerns about the U.S. fiscal outlook and debt downgrade triggered some of its biggest one-day drops in years.
On Aug. 8 the index plunged more than 4 percent and touched 11,617.81, its lowest level since August, 2010.
The TSX is still down 1.8 percent from the end of July, but is up more than 9 percent from its August low.
"Its been one of the most volatile months on record," said Bruce Latimer, trader at Dundee Securities.
"The last few days we've had a pretty decent rally in both North American markets. You've got a month end today, and lot of traders are squaring positions."
Energy stocks rose 0.68 percent on Wednesday as oil hit a four-week high on a large drop in U.S. gasoline inventories. Canadian Natural Resources (CNQ.TO), up 1.2 percent at C$36.80, was among the top gainers on the index. [O/R]
Copper prices, driven higher by a weaker U.S. dollar and supply concerns, helped lift base metal miners and offset losses in the broader materials sector as gold prices slumped. [MET/L] [GOL/]
First Quantum Minerals (FM.TO) was among the top gainers, rising 4.7 percent to C$23.65, while gold miners such as Kinross Gold (K.TO), off 0.9 percent at C$16.96, and Yamana Gold (YRI.TO), down 1.4 percent at C$15.43, weighed heavily.
Bombardier Inc (BBDb.TO) was another top decliner, down 7.2 percent at C$4.75.
The Canadian train and plane maker sketched a gloomy outlook for its crucial regional jet business on Wednesday as a weak global economy cut demand, sinking its shares despite strong profit numbers. [ID:nL4E7JV1V5] (Editing by Jeffrey Hodgson)