3 Min Read
* TSX down 8.36 points, or 0.08 percent, at 10,912.17
* CIBC drops 5.3 percent after quarterly results
* Rosy U.S. data fails to lift stocks higher
(Adds details, quote)
By Jennifer Kwan
TORONTO, Aug 26 (Reuters) - Toronto's main stock index finished slightly lower on Wednesday as Canadian Imperial Bank of Commerce (CM.TO) reported quarterly results that missed expectations and investors took a pause from the dizzying rally of recent months.
CIBC was the most influential mover on the downside after it reported a lower-than-expected quarterly profit as the bank set aside more money to cover bad loans, sending shares down 5.3 percent to C$65.01. [ID:nN24133906]
"CIBC is off and that is holding the Canadian market back," said Paul Taylor, chief investment officer at BMO Harris Investment Management Inc.
The index fell sharply at the open, dropping nearly 1 percent after CIBC reported results. At the outset of the day other banks handed back gains made on the back of Bank of Montreal's surprisingly solid third-quarter report on Tuesday.
But some of Canada's big lenders finished the day higher including Bank of Montreal (BMO.TO), up 2.6 percent at C$53.65. Toronto-Dominion Bank (TD.TO) climbed 0.8 percent to C$66.25. Overall, the financials sector was flat, down 0.06 percent.
The S&P/TSX composite index .GSPTSE was down 8.36 points, or 0.08 percent, at 10,912.17, with seven of 10 sectors lower.
The price of oil settled lower at $71.43 a barrel, pressured by rising U.S. stockpiles. [ID:nSP475982] The energy group was little changed, down 0.01 percent and materials were off 0.49 percent.
Nexen Inc NXY.TO fell 1.5 percent to C$22.40, while EnCana (ECA.TO) dropped 0.2 percent to C$57.29.
Eldorado Gold (ELD.TO) dropped 4.9 percent to C$11.38. Eldorado said on Wednesday it will buy Sino Gold Mining Ltd SGX.AX for C$2.0 billion ($1.8 billion) in an all-share deal that will more than double the size of its gold production in China.
Reassuring data that showed new U.S. home sales hit their highest level in 10 months in July and orders for durable goods surged failed to move the market higher as investors took a break from buying stocks. [ID:nN26259327]
"We're still in the doldrums here. We probably won't get any defined direction until people get back from vacation," said Lex Kerkovius, senior research analyst at McLean & Partners Wealth Management Ltd., in Calgary.
"It's going to be choppy from time to time. I don't think the market is going to find any level higher until we get more confirmation of a recovery. We've come a long way in a relatively short span."
The market is up some 45 percent from its multi-year low reached in early March.
The blue chip S&P/TSX 60 index .TSE60 closed 0.60 of a point lower, or 0.09 percent, at 656.44.
$1=$1.10 Canadian Reporting by Jennifer Kwan; Editing by Jeffrey Hodgson