CANADA STOCKS-TSX pushes higher despite slumping banks

Fri May 27, 2011 5:17pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX up 21.69 points, or 0.16 percent, at 13,797.59
 * Eight of the index's 10 main groups close higher
 * Royal Bank drops hard on disappointing earnings
 (Updates with details)
 By Solarina Ho
 TORONTO, May 27 (Reuters) - Toronto's main stock index
closed near a four-week high on Friday as firmer commodity
prices pushed up resource shares, overcoming a big drop in
Royal Bank of Canada.
 Gold and copper prices rose to near three-week highs,
helped by a weaker U.S. dollar, lifting the index's materials
group to a 1.05 percent gain. [GOL/] [MET/L] In that group,
three stocks -- Kinross Gold K.TO, diversified miner Teck
Resources TCKb.TO and fertilizer producer Potash Corp
POT.TO -- were the three most influential gainers on the
index, accounting for 0.12 percent of its rise.
 Kinross jumped 4.93 percent to C$15.76, while Teck climbed
2.38 percent to C$50.32, and Potash was up 1.15 percent at
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE was up 21.69 points, or 0.16 percent, at 13,797.59.
The TSX gained 1.06 percent for the week and closed at its
highest level since May 2, when it finished at 13,934.51.
 Eight of its 10 main groups were in positive territory. The
hefty financial sector and the consumer staples group were the
lone decliners.
 Financials fell 0.82 percent with Royal Bank of Canada
RY.TO, the country's largest bank, by far the biggest drag
after it reported a profit that rose but fell short of
expectations due to weakness in its capital markets unit.
 RBC also announced a higher dividend. But that didn't stop
its shares falling 3.03 percent to C$57.36. The RBC drop was
4-1/2 times more influential on the index than that of next
biggest downside mover -- Suncor Energy SU.TO -- which was
off 0.85 percent at C$40.75.
 RBC's results came just a day after rivals Toronto-Dominion
Bank TD.TO and Canadian Imperial Bank of Commerce CM.TO
reported weaker-than-expected profits that sent their shares
tumbling. [nN26238530]
 Several analysts cut share-price targets on CIBC, while TD
received a pair of raises and one reduction.
 "People are a little disappointed in the (bank) results as
they've been coming out," said Michael Sprung, president of
Sprung & Co Investment Counsel. "They've been on the low end of
estimates. But overall they're not too bad. We are getting the
dividend increases that we wanted to see."
 Four of the top six decliners were banks.
 ($1=$0.98 Canadian)
 (Reporting by Solarina Ho; editing by Peter Galloway)