CANADA STOCKS-TSX rallies on strong golds, CIBC results

Wed Aug 25, 2010 4:36pm EDT
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* TSX rises 90.77 points to 11,648.12

* Materials group leads TSX higher as golds glimmer

* Financials gain as CIBC results top forecasts (Updates to close, adds quote)

By Jennifer Kwan

TORONTO, Aug 25 (Reuters) - Toronto's main stock index closed higher on Wednesday, swinging back from a five-week low hit earlier in the day, as gold prices climbed and Canadian Imperial Bank of Commerce CM.TO unveiled results that topped market expectations.

Big names on the upside included gold miners Barrick Gold (ABX.TO: Quote), up 3.3 percent at C$47.96, and Goldcorp G.TO, which soared 3.7 percent to C$44.60 as the price of bullion rose. [GOL/] The index's materials sector, home to fertilizer companies and miners, rose 2 percent. [GOL/]

Financials also gained as CIBC reported a strong third-quarter profit, relieving some concern about bank results after Bank of Montreal reported a weaker-than-expected profit on Tuesday. Shares of CIBC, the top net gainer on the market, climbed 4.9 percent to C$70.08. [ID:nN25110938]

"CIBC's results beat expectations and have taken the sting out of the weaker BMO numbers," said John Johnston, chief strategist for Harbour Group at RBC Dominion Securities.

"It's kind of feeding a better view on the Canadian banks."   Continued...