August 25, 2010 / 8:41 PM / 8 years ago

CANADA STOCKS-TSX rallies on strong golds, CIBC results

* TSX rises 90.77 points to 11,648.12

* Materials group leads TSX higher as golds glimmer

* Financials gain as CIBC results top forecasts (Updates to close, adds quote)

By Jennifer Kwan

TORONTO, Aug 25 (Reuters) - Toronto’s main stock index closed higher on Wednesday, swinging back from a five-week low hit earlier in the day, as gold prices climbed and Canadian Imperial Bank of Commerce (CM.TO) unveiled results that topped market expectations.

Big names on the upside included gold miners Barrick Gold (ABX.TO), up 3.3 percent at C$47.96, and Goldcorp (G.TO), which soared 3.7 percent to C$44.60 as the price of bullion rose. [GOL/] The index’s materials sector, home to fertilizer companies and miners, rose 2 percent. [GOL/]

Financials also gained as CIBC reported a strong third-quarter profit, relieving some concern about bank results after Bank of Montreal reported a weaker-than-expected profit on Tuesday. Shares of CIBC, the top net gainer on the market, climbed 4.9 percent to C$70.08. [ID:nN25110938]

“CIBC’s results beat expectations and have taken the sting out of the weaker BMO numbers,” said John Johnston, chief strategist for Harbour Group at RBC Dominion Securities.

“It’s kind of feeding a better view on the Canadian banks.”

Royal Bank of Canada (RY.TO) was up 1.2 percent at C$50.69, and Bank of Montreal (BMO.TO) rose 1.5 percent to C$56.34. Toronto-Dominion Bank (TD.TO) edged 0.3 percent higher to C$69.63, while Bank of Nova Scotia (BNS.TO) shot up 1.7 percent to C$50.44.

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended the day up 90.77 points, or 0.79 percent, at 11,648.12, with seven of its 10 main sectors higher.

Earlier in the session it hit its lowest point since July 21 at 11,469.25 on gathering worries over the outlook for the global economy, underscored by U.S. data.

New U.S. home sales hit a record low in July and orders for durable goods were weak, heightening fears the U.S. economy was at risk of a new downturn. [ID:nN25121445]

$1=$1.06 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway

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