May 26, 2011 / 9:33 PM / 6 years ago

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

   * 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)                                        

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