February 25, 2010 / 10:06 PM / 9 years ago

CANADA STOCKS-TSX ends 3-day tumble as banks, gold shine

* TSX index climbs 0.95 percent to 11,631.44

* Banks higher on healthy quarterly results

* Golds gain as precious metal turns higher

* Bombardier jumps more than 7 pct on C-Series deal (Adds details)

By Ka Yan Ng

TORONTO, Feb 25 (Reuters) - Toronto’s main stock index closed higher on Thursday after a three-day slide as stronger than expected bank earnings and a firm gold price lifted two of the index’s biggest sectors.

The financials group was up about 1.08 percent, spurred by healthy results from Canadian Imperial Bank of Commerce (CM.TO) and National Bank of Canada (NA.TO).

The results kicked off earnings season for Canada’s big banks, and raised expectations for the rest of the banking group, which will report results over next 1-1/2 weeks. [ID:nN25244939]

All six big banks rose, with CIBC up 3.14 percent at C$69.95, while National gained 1.9 percent to C$59.73.

“The financials came alive due to the earnings...and that whole sector propped up Toronto most of the day,” said Steve Ibel, institutional equities trader at Beacon Securities in Halifax, Nova Scotia.

Gold-mining shares were also among big gainers, lifting the materials group 2.76 percent after the price of gold moved above $1,100 an ounce. Barrick Gold (ABX.TO) was up 2.53 percent at C$39.69, while Goldcorp (G.TO) gained 3.73 percent to C$39.79.

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE finished up 109.61 points, or 0.95 percent, at 11,631.44, rebounding from an earlier decline of nearly 1 percent. Eight of the index’s 10 main groups were up.

Bombardier (BBDb.TO) was also another active issue as the plane and train maker said it has signed a deal worth about $3 billion for its C-Series aircraft, one day after it signed a framework deal with French National Railways for a train contract that could be worth about $11 billion.

Bombardier stock jumped more than 7 percent to end at C$5.87. [ID:nN25244487]

The TSX opened lower on Thursday as soft U.S. economic data cast doubt on the pace of the global economic recovery, while Greece’s sovereign debt woes continued to weigh on investor sentiment. [ID:nN2597849] [ID:nN24204733] [ID:nTOE61O07J]

Some of the U.S. data this week, such as reports showing a drop in consumer confidence and a plunge in new home sales to a record low in January, support views that economic growth may still be shaky.

Trading on Friday may be influenced by U.S. economic reports on fourth-quarter gross domestic product, consumer sentiment for February, and existing home sales for January.

$1=$1.06 Canadian Reporting by Ka Yan Ng; editing by Peter Galloway

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