May 5, 2009 / 8:49 PM / 10 years ago

CANADA STOCKS-TSX hits 2009 high; financials overcome weaker oil

* TSX up 0.1 pct at 9,880.72

* Gain follows 4 percent rally on Monday

* Financials, up 1.7 pct, lead TSX higher

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TORONTO, May 5 (Reuters) - Toronto’s main stock index ended slightly higher on Tuesday, after touching their highest level in almost 6 months, as a firmer financial sector overcame weak energy issues, which fell as oil prices sagged.

Six of the index’s 10 main sectors were higher, including the key financials group, which rose 1.7 percent, and the consumer discretionary sector, up 1.3 percent.

Top advancers included Bank of Nova Scotia (BNS.TO), up 2.3 percent at C$36.30, and Toronto Dominion Bank (TD.TO), which climbed 2.1 percent to C$50.39.

The sector shrugged off caution south of the border over the U.S. bank stress test results, due May 7. A source familiar with official talks said U.S. regulators have deemed that about 10 of the 19 U.S. banks being stress tested will need to raise more capital. [ID:nN04553413]

“Right now the Canadian banks are perceived to be stronger and have better regulation and processes than their U.S. counterparts,” said Steve Ibel, institutional equities trader at Beacon Securities, in Halifax, Nova Scotia.

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 10.35 points, or 0.1 percent, at 9,880.72.

In corporate news, some earnings results helped lift the TSX, including Loblaw Companies (L.TO), which posted a jump in quarterly profit as it benefited from rising food price inflation and an extra week of sales, sending its shares up 7.6 percent to C$35.31. [ID:nN05294253]

The index had seesawed for most of Tuesday as limpness in the price of oil spurred a decline in the energy group, while the index’s recent run-up also prompted some traders to sell to lock in gains.

Crude prices CLc1 settled lower at $53.84 a barrel after hitting a 2009 high as bulging oil inventories and falling energy demand outweighed fragile hopes for an economic recovery. [ID:nSP351504]

The big energy group fell 1.5 percent and materials dropped 0.6 percent.

Energy companies topped the list of decliners, including EnCana (ECA.TO), down 1.6 percent at C$59.02, and Canadian Natural Resources (CNQ.TO), down 1.7 percent at C$59.85. Goldcorp (G.TO) fell 1.5 percent to C$33.83. (Reporting by Jennifer Kwan; Editing by Jeffrey Hodgson)

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