CANADA STOCKS-TSX falls on commodities, but banks rise

Tue Nov 24, 2009 11:05am EST
 
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 * TSX falls 0.22 pct to 11,599.28 on commodity weakness
 * BMO's higher profit, Diners Club deal boost bank shares
 * U.S. Q3 GDP revision slightly lower than expected
 (Adds details)
 By Ka Yan Ng
 TORONTO, Nov 24 (Reuters) - Toronto's main stock index was
lower on Tuesday morning due to weakness in commodity shares
and evidence of a slow recovery in the U.S. economy.
 Strength in banking stocks stemming from firm Bank of
Montreal (BMO.TO: Quote) quarterly results cushioned the fall. The top
five spots the market's list of risers were held by big banks.
 Bank of Montreal reported a higher-than-expected 16 percent
increase in quarterly profit and said it was buying the Diners
Club North America credit card business, a deal that would
double its corporate card portfolio. [ID:nN23263602]
 BMO shares gained 0.5 percent to C$53.80. Toronto-Dominion
Bank (TD.TO: Quote) was up 0.27 percent at C$67.53.
 Resource shares were big decliners on Tuesday, led by a 1.7
percent drop in fertilizer company Potash Corp (POT.TO: Quote) to
C$118.25. Lower oil prices and a recent runup in commodity
stocks also put pressure on companies such as diversified miner
Teck Resources (TCKb.TO: Quote), down 2.2 percent at C$36.55, and oil
producer EnCana Corp (ECA.TO: Quote), down 0.54 percent at C$55.60.
 "I think it's just an overall selloff in the market today.
It had a pretty nice run in some of these commodities so it was
ripe for some profit-taking," said Ian Nakamoto, director of
research at MacDougall, MacDougall & MacTier.
 At 10:40 a.m. (1540 GMT), the S&P/TSX composite index
.GSPTSE was down 25.50 points, or 0.22 percent, at 11,599.28,
after opening higher.
 The U.S. economy grew more slowly than first thought in the
third quarter, but house prices rose for the fifth straight
month in September and U.S. consumer confidence was up in
November, suggesting a slow economic recovery is still intact.
[ID:nN24296971]
 "I think it just confirms that we're in a slow recovery
here. It's good to see a positive but it wasn't as positive as
people were expecting," Nakamoto said.
 ($1=$1.06 Canadian)
 (Editing by Peter Galloway)
 ((kayan.ng@thomsonreuters.com; Reuters Messaging:
kayan.ng.reuters.com@reuters.net; 416-941-8109))
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