May 25, 2009 / 2:51 PM / 10 years ago

CANADA STOCKS-TSX rises in anticipation of bank earnings

* TSX up 0.54 percent at 10,047.82

* Financials, up 1.24 percent, lead TSX gain

* Energy, materials shares flat (Adds details, quote)

By Jennifer Kwan

TORONTO, May 25 (Reuters) - Toronto’s main stock market index was higher on Monday morning, led up by financial issues in anticipation of this week’s start of Canadian bank earnings season, but trade was thin due to the U.S. market holiday.

Financials climbed 1.24 percent as banks are expected to report another profitable quarter, defying global trends, with this spring’s stock market rise seen as offsetting higher loan losses and lower income from interest and fees. [ID:nN22381048] [ID:nN22511243]

Royal Bank of Canada (RY.TO) climbed 1.2 percent to C$42.77 and Manulife Financial (MFC.TO) rose 1 percent to C$21.85.

“There could be some short-covering ahead of the earnings,” said Francis Campeau, broker at MF Global Canada, in Montreal.

At 10:07 a.m. (1407 GMT), the S&P/TSX composite index .GSPTSE was up 54.40 points, or 0.54 percent, at 10,047.82, with nine of its 10 main groups higher.

The index’s energy and materials groups were largely flat with oil and gas shares up 0.13 percent and materials falling 0.06 percent.

Oil prices fell toward $61 a barrel on Monday, giving away some of last week’s gains, ahead of OPEC’s meeting in Vienna, where the group is widely expected to agree not to cut oil output further. [ID:nSYD459549] Canadian Natural Resources (CNQ.TO) fell 0.5 percent to C$60.36.

Gold miner Goldcorp (G.TO) dipped 0.7 percent to C$41.67.

Magna International MGa.TO rose 2.3 percent to C$37.07. The German government will likely settle on a preferred bidder for Opel, the German unit of General Motors (GM.N), by the middle of the week, Chancellor Angela Merkel’s spokesman said on Monday. [ID:nLP6868] Magna has bid for a stake in Opel.

$1=$1.13 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway

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