UPDATE 1-Toronto stocks push higher with help from banks

Wed May 28, 2008 11:06am EDT
 
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(Updates to midmorning)

*Index climbs after starting lower

*Banking sector provides support

*Resources trim earlier losses

TORONTO, May 28 (Reuters) - The Toronto Stock Exchange's main index pushed higher on Wednesday morning, buoyed by strength in financials while resource shares trimmed earlier losses.

The banking sector was up 1.3 percent, with Toronto-Dominion Bank (TD.TO: Quote) up 97 Canadian cents, or 1.4 percent, at C$69.41 as investors awaited quarterly results due later in the day.

Bank of Nova Scotia (BNS.TO: Quote) recovered C$1.23, or 2.6 percent, to C$48.88 the day after it said that higher provisions for credit losses helped eat into its second-quarter profit.

"I think what we saw yesterday with BMO and Scotia was pretty much as expected," said John Kinsey, portfolio manager at Caldwell Securities Ltd.

"Loan loss provisions were up and the capital side was down, and that was expected," he said, adding that there appeared to be some light at the end of the tunnel in terms of the impact of the credit squeeze on Canadian banks.   Continued...