October 10, 2017 / 9:25 PM / 3 years ago

CANADA STOCKS-TSX rises as financials notch record high close

(Adds portfolio manager quotes and details throughout, updates prices)

* TSX closes up 42.04 points, or 0.27 percent, at 15,770.36

* Index touches its highest intraday since April

* Seven of the TSX’s 10 main groups advance

By Fergal Smith

TORONTO, Oct 10 (Reuters) - Canada’s main stock index rose on Tuesday as the financial shares group, which accounts for about a third of the TSX’s weight, posted a record high close.

The Toronto Stock Exchange’s S&P/TSX composite index , which had been closed on Monday for Canada’s Thanksgiving holiday, closed up 42.04 points, or 0.27 percent, at 15,770.36.

The index, which touched intraday its highest since April 25 at 15,788.51, has climbed more than 5 percent since the current rally started just over a month ago.

The rally in oil prices “has been a key factor” behind the recent rise in the TSX, said Steve Belisle, senior portfolio manager at Manulife Asset Management. “The other part is financials, especially the Canadian banks.”

Shares of Toronto-Dominion Bank climbed 0.9 percent to C$71.06 and Manulife Financial Corp gained nearly 2 percent to C$25.93. The overall financials group ended up 0.6 percent, posting its highest-ever close at 299.31.

Investors had worried that a slowdown in the housing market would slow earnings growth for banks. But data on Tuesday showed that housing starts dipped less than expected in September, capping another quarter of strong home-building growth.

On the downside, Ritchie Bros Auctioneers Inc fell 6.4 percent to C$34.82 after several analysts cut their price targets on the company after it published its September auction metrics, which were lower than expected.

Online retail platform Shopify Inc extended its slide, which began last week after short seller Citron Research made critical comments about the company.

Shopify shares fell 5.8 percent to C$115.76. The overall technology group eased 0.3 percent, one of just three groups to end lower.

U.S. crude prices settled 2.7 percent higher at $50.92 a barrel, supported by Saudi Arabian export cuts in November.

Still, the energy group ended little changed.

Magna International Inc advanced 2.1 percent to C$69.13. The auto parts producer said it had joined a consortium including BMW and Intel Corp to develop a self-driving vehicle platform for the use of automakers by 2020.

Additional reporting by Solarina Ho; Editing by W Simon and Peter Cooney

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