August 29, 2013 / 9:05 PM / 6 years ago

CANADA STOCKS-Telecoms gains, bank earnings take TSX higher

* TSX rises 97.51 points, or 0.77 percent, to 12,704.73
    * Eight of 10 main index sectors advance
    * TD, RBC jump after results, dividend increases
    * Gold-mining shares climb despite bullion decline

    By John Tilak
    TORONTO, Aug 29 (Reuters) - Canada's main stock index
advanced on Thursday, led by gains in financials and telecoms,
as bullish quarterly profit reports from major lenders and
strong economic data from the United States drove the market.
    A jump in telecoms shares also lifted sentiment. Investors
concluded that a move by Verizon Communications to buy
out the rest of its stake in Verizon Wireless from Britain's
Vodafone Group will likely force the U.S. heavyweight to
shelve its plans to enter the Canadian market. 
    The U.S. economy grew more quickly than expected in the
second quarter, helped by a surge in exports, bolstering the
case for the Federal Reserve to begin dialing back its bond
buying program. 
    Investor anxiety about Syria eased a little after signs
pointed to a delay in military action by at least several days
while the case was laid out to U.S. and British lawmakers.
    But that pulled down the price of oil, weighing on shares of
the energy producers.
    Royal Bank of Canada, Toronto Dominion Bank 
and Canadian Imperial Bank of Commerce posted earnings that
topped estimates on robust retail lending and wealth management
income. The three stocks had the biggest positive influence on
the market. 
    RBC and TD also raised their dividends. 
    No matter how challenging the circumstances, the banks have
been delivering consistent results and raising their dividends,
said Allan Small, senior investment adviser at Dundee Wealth,
who views banks stocks as attractive investments though not
bargains at these levels.
    "Banks have been the rock of many of my clients'
portfolios," he added. "If I had to think of a sector of the
market that I could rely on, I need to look no further than the
Canadian banks." 
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 97.51 points, or 0.77 percent, at 12,704.73.
    Eight of the 10 main sectors on the index were higher.
    Financials, the index's most heavily weighted sector, jumped
1.4 percent.
    TD added 2.7 percent to C$89.93, RBC climbed 1.2 percent to
C$65.24, and CIBC rose 2.8 percent to C$82.66.
    The materials sector, which includes mining stocks, climbed
0.5 percent. Gold-mining shares were up 1.2 percent despite a
fall in bullion. 
    Goldcorp Inc rose 1.9 percent to C$31.52, and Barrick
Gold Corp was up 2.1 percent to C$20.69.
    Telecoms shares jumped 2.2 percent, helped by gains in the
three biggest industry players. Rogers Communications Inc
 gained 3 percent to C$42.01, BCE Inc added
2.3 percent to C$43.44, and Telus Corp rose 2.5 percent
to C$33.10.
    "It's a short-term positive for BCE, Rogers and Telus,"
Small said. 
    "The valuations have come down a little bit but not to the
point where I would call them dirt cheap," he added. "However,
as a good income and growth investment, telecoms still work."
    With the price of oil declining, shares of energy producers
lost 0.4 percent. Suncor Energy Inc fell 1 percent to
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