TSX rallies on strong golds and CIBC results

Wed Aug 25, 2010 5:00pm EDT
 
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By Jennifer Kwan

TORONTO (Reuters) - Toronto's main stock index closed higher on Wednesday, swinging back from a five-week low hit earlier in the day, as gold prices climbed and Canadian Imperial Bank of Commerce unveiled results that topped market expectations.

Big names on the upside included gold miners Barrick Gold, up 3.3 percent at C$47.96, and Goldcorp, which soared 3.7 percent to C$44.60 as the price of bullion rose. The index's materials sector, home to fertilizer companies and miners, rose 2 percent.

Financials gained as CIBC reported a strong third-quarter profit, relieving some concern about bank results after Bank of Montreal reported a weaker-than-expected profit on Tuesday. Shares of CIBC, the top net gainer on the market, climbed 4.9 percent to C$70.08.

"CIBC's results beat expectations and have taken the sting out of the weaker BMO numbers," said John Johnston, chief strategist for Harbour Group at RBC Dominion Securities.

"It's kind of feeding a better view on the Canadian banks."

Royal Bank of Canada was up 1.2 percent at C$50.69, and Bank of Montreal rose 1.5 percent to C$56.34. Toronto-Dominion Bank edged 0.3 percent higher to C$69.63, while Bank of Nova Scotia shot up 1.7 percent to C$50.44.

The Toronto Stock Exchange's S&P/TSX composite index ended the day up 90.77 points, or 0.79 percent, at 11,648.12, with seven of its 10 main sectors higher.

The blue chip S&P/TSX 60 index closed 5.73 points, or 0.85 percent, higher at 678.33.   Continued...