CANADA STOCKS-TSX edges higher in late rally, but banks weigh

Thu May 26, 2011 5:32pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * TSX up 24.43 points, or 0.18 pct, at 13,775.90
 * Nine of 10 main groups advance
 * TD, CIBC results fall short, financials down 0.64 pct
 (Adds details, comments)
 By Solarina Ho
 TORONTO, May 26 (Reuters) - Toronto's main stock index
managed a broad, late session rally on Thursday, but
disappointing bank earnings kept a lid on gains.
 A strong showing by Suncor Energy SU.TO, Potash Corp
POT.TO and Teck Resources TCKb.TO led the way for resource
issues. The energy sector gained 0.88 percent while materials
advanced 0.16 percent.
 Suncor rose 1.81 percent to C$41.10, while Potash advanced
1.54 percent to C$54.07. Diversified miner Teck was up 1.55
percent at C$49.15.
 Four of the top five most influential gainers on the index
were resources issues, extending a recent trend higher by the
sector and bucking downward moves by commodity prices. [O/R]
[GOL/] [MET/L]
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 24.43 points, or 0.18 percent, at
13,775.90, after spending a lackluster afternoon hovered near
the unchanged mark. Nine of its 10 main groups were higher.
 A 0.64 percent decline in financial issues kept the
advances in check. Toronto Dominion Bank TD.TO, Canadian
Imperial Bank of Commerce CM.TO and National Bank of Canada
NA.TO all reported higher quarterly profits, but TD and CIBC
saw their shares slide after both banks fell short of
expectations. [ID:nN26230622] [ID:nN26207347]
 Four banks were among the top five most influential
decliners. CIBC, which slumped 3.9 percent to C$81.15, was the
index's biggest drag, followed closely by TD, which slipped
1.49 percent to C$84.02.
 "(Investors) didn't like the Commerce earnings and they
didn't seem to like the TD earnings. That's put the black mark
against the financials," said John Kinsey, a portfolio manager
at Caldwell Securities Ltd.
 The weak results contrasted with Bank of Montreal's
BMO.TO earnings on Wednesday, the first of the six biggest
banks to report. BMO's earnings had been characterized as
solid, raising hopes that would be echoed by other banks.
 Royal Bank of Canada RY.TO, which reports on Friday,
ended the session down 1.14 percent to C$59.15.
 Bank of Nova Scotia BNS.TO, which reports next week,
bucked the trend with a 1.49 percent rise to C$59.42, to round
off the top five most influential gainers.
 Investors expects BNS, which has a proportionately larger
domestic commercial lending exposure, to post strong results  
next week, as many of its rivals have recently reported strong
gains in this segment.
 Also on the positive side was a 1.58 percent rise by TMX
Group X.TO, which finished at C$44.26. A group of Canadian
banks and pension funds said on Wednesday it would take its
C$3.6 billion bid for TMX directly to shareholders. TMX had
rejected Maple Group's proposal in favor of a friendly offer
from London Stock Exchange. [ID:nN26282442]
 Diversified metals miner Lundin Mining LUN.TO tumbled
17.29 percent to finish at C$7.08 after it said it had rejected
several buyout bids and that its chief executive, Phil Wright,
would resign in a month. [ID:nLDE74P0TG]
 Trading was expected to quiet down by midday on Friday,
Kinsey said, and continue into Monday, as markets prepared for
the Memorial Day long weekend in the United States.
 ($1=$0.98 Canadian)
 (Additional reporting by Euan Rocha; Editing by Rob Wilson)