CANADA STOCKS-TSX up for third day as RBC, TD jump

Thu May 22, 2014 11:09am EDT
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* TSX rises 43.81 points, or 0.30 percent, to 14,693.61
    * Seven of 10 main index sectors advance
    * RBC climbs 1.6 percent, TD jumps 2.1 percent

    By John Tilak
    TORONTO, May 22 (Reuters) - Canada's main stock index
climbed for a third straight session on Thursday as shares of
Royal Bank of Canada and Toronto Dominion Bank 
advanced after the country's two biggest banks reported
quarterly results.
    The market was also supported by comments from the Federal
Reserve on Wednesday that sought to reassure investors that the
U.S. central bank will gradually retreat from its highly
stimulative monetary policy. 
    Stronger quarterly earnings at RBC and TD helped fuel gains
in shares of other major banks as well and boost investor
confidence in the broader market.
    RBC reported a 15 percent rise in quarterly profit, driven
by strong domestic lending volumes and capital markets revenue.
TD's quarterly profit rose 16 percent on strong Canadian and
U.S. retail lending.  
    The results were "phenomenal," said Barry Schwartz, vice
president and portfolio manager at Baskin Financial Services.
    "This is Goldilocks for the banks," he added. "The bears are
out dancing in the forest, and this is the time to gorge at the
free money that the central banks are giving."
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 43.81 points, or 0.30 percent, at 14,693.61.
Seven of the 10 main sectors on the index were higher.
    The materials sector, which includes mining stocks, rose 0.2
percent, with Teck Resources Ltd adding 0.5 percent to
    RBC climbed 1.6 percent to C$75.50, and TD was up 2.1
percent at C$53.01. Bank of Nova Scotia and Bank of
Montreal also gained.
    Those gains helped push financial shares, the index's most
heavily weighted sector, up 0.9 percent.

 (Editing by Dan Grebler)