CANADA STOCKS-TSX rallies on strong golds, CIBC results

Wed Aug 25, 2010 4:58pm 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 (Adds quotes, details)

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: Quote) 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: Quote), 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 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...