CANADA STOCKS-TSX rises 4 percent on resources, banks

Mon Nov 24, 2008 12:40pm EST
 
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* Royal Bank of Canada warns of trading losses

* Financials reverse early steep losses, most banks up

* Energy group advances as oil rises more than 8 pct

* Citigroup bailout helps lift sentiment broadly

By Ka Yan Ng

TORONTO, Nov 24 (Reuters) - The Toronto Stock Exchange's main index shot 4 percent higher in volatile dealings on Monday as resource shares rose on higher commodity prices and the financial group gained on the U.S. government's rescue of banking giant Citigroup. (C.N: Quote)

The financial group advanced 3.34 percent, reversing a loss earlier in the day brought on by an earnings warning from the country's biggest bank, Royal Bank of Canada (RY.TO: Quote).

Royal said its fourth-quarter profit, due next week, would drop by 15 percent from the year-before quarter, partly because of held-for-trading securities losses. It also said it would book a provision for credit losses of about C$620 million. [ID:nN24501121]

That prompted an early drop in Royal shares that was later offset by positive reaction to Washington's Citigroup move, with concerns about weaker Canadian bank earnings being outweighed by relief that the global financial system might have avoided collapse with the Citigroup rescue.   Continued...