*TSX up 31.21 points, or 0.24 percent, at 13,179.56
*Financials down as TD, CIBC earnings weigh
*Gildan down 7 pct (Adds details, quote)
By Jennifer Kwan
TORONTO, Dec 2 (Reuters) - Toronto’s main stock index edged higher on Thursday morning as strength in commodity prices boosted resource issues, but gains were tempered by lower earnings from Toronto-Dominion Bank (TD.TO) and Canadian Imperial Bank of Commerce (CM.TO).
Leading the list of advancers was Canadian Natural Resources Ltd (CNQ.TO), which climbed 1.1 percent to C$41.75. The independent oil explorer forecast a higher capital budget for 2011 and said it would use about 45 percent of the spending for long-term growth. [ID:nSGE6B108H]
Also helping to lift the market was Teck Resources TCKb.TO, up 2.1 percent at C$53.59, and Talisman Energy TLM.TO, which climbed 1.4 percent to C$20.11 as copper, gold and oil prices edged higher. [MET/L] [O/R]
John Kinsey, portfolio manager at Caldwell Securities Ltd, said resource issues were getting a boost from the lingering effects of Wednesday’s upbeat Chinese manufacturing data. [ID:nTOE6B004C]
“Commodities feed off of the Chinese economy and the numbers of out China yesterday were encouraging and that kind of put everything up,” he said.
TD, Canada’s second-biggest lender, and CIBC, the country’s fifth-biggest bank, reported mixed fourth-quarter results on Thursday as a sharp drop in trading revenue offset stronger retail banking results. [ID:nN02201701]
TD shed 2.1 percent to C$73.75, while CIBC sank 0.6 percent to C$80.56, helping to push down the index’s financials sector by 0.2 pct.
“Investors didn’t really like the Commerce or TD earnings. ... that kind of pushed all the financials down,” Kinsey said.
At 10:09 a.m. (1509 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 31.21 points, or 0.24 percent, at 13,179.56. The index rose as high as 13,181.50, its highest level since early September 2008.
The index opened down 2.96 points at 13,145.39.
Also on the downside was Gildan Activewear Inc (GIL.TO), which was one of the top net losers on the market and down 7.1 percent at C$29.21. The clothing maker reported a 34 percent rise in profit and forecast higher 2011 sales, but its financial forecasts fell short of expectations. [ID:nSGE6B10AC]
Bombardier Inc (BBDb.TO), one of the most heavily traded stocks on the market, fell 3.6 percent to C$4.60. The civil-aircraft and train maker reported a drop in quarterly profit and weak revenue. It said the aerospace environment remained difficult. [ID:nSGE6B108X]
($1=$1.01 Canadian) (Reporting by Jennifer Kwan; editing by Peter Galloway)