CANADA STOCKS-Buoyant financials lift TSX in quiet session

Mon May 25, 2009 5:15pm EDT
 
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* TSX finishes up 0.76 percent at 10,069.50

* Index stays in narrow range in quiet trade

* Financials up 2.1 percent ahead of bank earnings (Adds details, quotes)

By Jennifer Kwan

TORONTO, May 25 (Reuters) - Toronto's main stock market index ended higher on Monday, led by the financials sector, as investors snapped up bank shares in anticipation of a healthy earnings season.

Financials climbed 2.1 percent as Canadian banks are expected to report another profitable quarter this week, defying global trends. This spring's stock market rise is seen offsetting higher loan losses and lower income from interest and fees. [ID:nN22381048] [ID:nN22511243]

Royal Bank of Canada RY.TO climbed 1 percent to C$42.65 and Bank of Nova Scotia BNS.TO rose 2.3 percent to C$36.79.

"Investors are feeling a little bit better about the banks," said Adrian Mastracci, portfolio manager and president at KCM Wealth Management Inc in Vancouver. "We're waiting for the bank earnings."

While speculation about bank earnings may be boosting financials, there is also follow-through on an existing theme of optimism about a global economic recovery, said Lex Kerkovius, senior research analyst at McLean & Partners Wealth Management Ltd in Calgary.   Continued...