Toronto stocks to open mixed, CIBC results eyed

Wed Aug 27, 2008 9:19am EDT
 
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*Firm oil, gold may help resource stocks

*Maple Leaf Foods remains in spotlight

TORONTO Aug 27 (Reuters) - The Toronto Stock Exchange's main index was set for a mixed open on Wednesday, buoyed by strength in commodity-related stocks, but quarterly results from Canadian Imperial Bank of Commerce (CM.TO: Quote) could temper gains.

CIBC, Canada's fifth-biggest lender, reported a 91 percent drop in third-quarter profit, mainly due to losses in structured investments related to the U.S. residential mortgage market.

However, strength in the price of oil and gold may support the benchmark index, said John Ing, president of Maison Placements Canada.

"The resources will offset, in part, weakness in the financials," said Ing.

On Tuesday Bank of Montreal (BMO.TO: Quote), Canada's fourth largest bank, and Bank of Nova Scotia (BNS.TO: Quote) reported quarterly results that lagged already lowered expectations, sending the financial services sector down 1.1 percent and setting the tone for the week.

Banks in Canada have been tangled in the downward momentum in the U.S. financial sector, further impacted on Tuesday after a report showed that the number of troubled U.S. banks is rising.

Choppy activity is expected to continue this week as the market awaits results from the remainder of Canada's big banks.   Continued...