CANADA STOCKS-TSX reverses early losses; higher on bank stocks
* TSX up 45.59 points at 11,480.17.
* Financial stocks pushed past lower commodity prices
By Irene Kuan
TORONTO, Nov 27 (Reuters) - Toronto's main stock index was higher on Friday morning after falling 1 percent at the open as gains in financial stocks overcame worries about economic fears in Dubai.
Shares of Royal Bank of Canada (RY.TO: Quote) were up 0.86 percent at C$56.36 while Toronto Dominion Bank (TD.TO: Quote) was up 0.82 percent at C$66.38. Bank of Montreal (BMO.TO: Quote) shares were up 0.7 percent at C$53.02.
Canadian bank stocks fell sharply on Thursday in the wake of news about Dubai's financial woes. But no Canadian financial institutions have declared exposure to the troubles in Dubai.
"People are feeling more comfortable that the financial structure of the world is not as bad," said Paul Harris, portfolio manager at Avenue Investment Management,
"If it had happened in January or February, people would be more devastated," he said, referring to the economic malaise at the beginning of the year. He also said movements on the market were exaggerated due to illiquidity of U.S. stock markets after Thursday's holiday. The U.S. market has a shortened session on Friday.
On the downside, oil prices sank to six-week lows below $75 a barrel as fears that Dubai could default convulsed financial markets and the dollar rose as investors moved into safer assets. [ID:nSP294995] [O/R]
EnCana (ECA.TO: Quote) was the biggest drag on the overall market, down 0.33 percent at C$56.70.
At 10:35 a.m. (1535 GMT), the S&P/TSX composite index .GSPTSE was up 45.59 points, or 0.4 percent, at 11,480.17.
The Canadian dollar neared a three-week low versus the U.S. currency on Friday, extending losses in a risk-averse market that has been shaken by concern about Dubai's debt problems. [ID:nN27418427] (Editing by Jeffrey Hodgson) ((firstname.lastname@example.org; Reuters Messaging: email@example.com; 416-941-8101))
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