CANADA STOCKS-TSX lower on weak banks, materials

Wed May 27, 2009 4:42pm EDT
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* TSX finishes down 1.4 percent at 10,142.16

* Financials tumble 2.9 pct, lead TSX lower

* Bank earnings remain main market focus (Updates with official closing prices, adds details, quotes)

By Jennifer Kwan

TORONTO, May 27 (Reuters) - Toronto's main stock index snapped three-session winning streak on Wednesday, tumbling more than 1 percent as financial issues gave up some recent gains and the materials group fell as metal prices sagged.

The heavily weighted financials sector dropped 2.9 percent after gaining 4.6 percent on Tuesday when Bank of Montreal (BMO.TO: Quote) posted a stronger quarterly profit than expected.

Banks were among the main movers to the down side on Wednesday, including BMO, down 4.4 percent at C$41.79. Royal Bank of Canada (RY.TO: Quote) sagged 2.3 percent to C$44.00, while Toronto-Dominion Bank (TD.TO: Quote) fell 3.3 percent to C$50.28 and Bank of Nova Scotia (BNS.TO: Quote) was down 2.7 percent at C$37.75.

"The financials are lower across the board. It's a little consolidation," said Bruce Latimer, a trader at Dundee Securities. "You've still got more of them to report this week so they may have gotten ahead of themselves."

Laurentian Bank of Canada (LB.TO: Quote) was the latest to report results, which came in below market expectations on Wednesday. [ID:nN25448091] Its shares fell 5 percent to C$29.22.   Continued...