October 28, 2013 / 3:41 PM / 7 years ago

CANADA STOCKS-TSX index hits 2-year high before erasing gains

* TSX edges down 0.03 percent

* Banks lead gains, while energy stocks weigh

By Alastair Sharp

TORONTO, Oct 28 (Reuters) - Canada’s main stock index touched a two-year high on Monday before erasing gains to trade little changed, as banks inched higher and some of the country’s heavyweight mining and energy stocks slipped.

“We’ve had a heck of a move already this month in North American markets, particularly in Canada,” said Irwin Michael, a portfolio manager at ABC Funds. “There doesn’t appear to be a lot of fear right now, it’s complacency.”

The Toronto Stock Exchange’s S&P/TSX composite index has added 5 percent so far this month.

Early in Monday’s session it advanced as much as 0.12 percent to 13,416.16, a level last seen in July 2011.

By late morning, however, it had erased gains and edged down 3.36 points, or 0.03 percent, to trade at 13,395.32.

Energy stocks, which have risen some 13 percent from a trough in June, weighed on the benchmark index, with Canadian Natural Resources off 1.4 percent at C$32.87 and Suncor Energy Inc down 0.2 percent at C$37.57.

Miners were more mixed, with Teck Resources down 1.4 percent at C$29.85 and Barrick Gold Corp adding 0.9 percent to C$21.26 and Goldcorp Inc up 0.8 percent to C$28.22.

Meanwhile, banks provided much of the positive impact, with Royal Bank of Canada up 0.5 percent at C$69.78, Bank of Nova Scotia adding 0.4 percent to C$62.66 and Toronto-Dominion Bank rising 0.3 percent to C$94.34.

ABC’s Irwin said that the index could yet trade higher by the end of the year, but that a shock between now and then was also possible.

“I do think the market will end the year higher than where it is today, but from now until then I suspect we are due for a correction and I think it will be quite healthy for the marketplace,” he said.

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