CANADA STOCKS-TSX rises on bank results, oil prices

Thu Feb 24, 2011 11:10am EST
 
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* TSX rises 0.35 pct to 14,005.36 pts

* CIBC, National Bank results help lead TSX higher

* Energy group adds support as oil gains; Golds weigh (Adds details)

By Ka Yan Ng

TORONTO, Feb 24 (Reuters) - Toronto's main stock index climbed on Thursday morning, pushing back above the 14,000-mark on strong quarterly results from Canadian Imperial Bank of Commerce and National Bank of Canada, while energy shares followed another rise by oil prices.

Both CIBC CM.TO and National Bank (NA.TO: Quote) reported quarterly results that topped estimates, and encouraged anticipation of dividend increases later this year from Canada's biggest lenders. [ID:n][ID:n]

All major banks rallied well more than 1 percent, helping the financials group gain 1.6 percent. CIBC was up 2.6 percent at C$81.76, while National rose 1.8 percent to C$73.10.

"The banks had a nice runup before the earnings and people thought that they were expensive, but it turns out that they're not so expensive if they're going to deliver these types of earnings," said Barry Schwartz, portfolio manager at Baskin Financial Services.

"Banks are trading at a reasonable 10-12 times multiple with potential for significant dividend increases this year."   Continued...