August 26, 2010 / 3:05 PM / 8 years ago

CANADA STOCKS-TSX gains broadly despite Royal Bank results

   * TSX climbs 0.47 percent to 11,705.13
 * Nine of 10 groups rise
 * Royal Bank falls as results miss estimates,  (Adds details)
 By Ka Yan Ng
 TORONTO, Aug 26 (Reuters) - Toronto’s main stock index climbed on Thursday morning as stronger-than-expected U.S. economic data helped alleviate worries about a weak U.S. labor market, but its financial sector was dragged lower by disappointment over Royal Bank of Canada’s (RY.TO) quarterly results.
 New U.S. claims for unemployment benefits fell more than expected last week and a measure of underlying labor market trends rose to a nine-month high, U.S. government data showed. [ID:nN26152418]
 That was enough to lift nine of the 10 sectors on the Toronto stock index, with the commodities groups, oil and gas and materials, leading the way.
 Peter Chandler, senior vice-president at Canaccord Wealth Management in Waterloo, Ontario, said bargain-hunting was at work as resource shares have been drawn lower recently.
  The energy group rose 0.6 percent as the price of oil rose for a second day, lifting Suncor Energy (SU.TO) by 1.47 percent to C$32.45, and Imperial Oil (IMO.TO) 0.5 percent to C$38.69.
 Materials were up 0.8 percent, helped by rising copper prices. Teck Resources TCKb.TO rose 2.85 percent to C$34.69.
 At 10:45 a.m. (1445 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE climbed 57.01 points, or 0.47 percent, to 11,705.13.
 The index dipped briefly in early dealings due to a fall in its financials sector. Financial shares were the lone index sector in the red, pulled down 0.11 percent by disappointment over Royal Bank of Canada’s quarterly results.
 Canada’s largest bank fell sharply after its third-quarter profit fell 18 percent, missing analysts’ estimates, as weak trading activity ate into capital markets income. Royal tumbled 2.5 percent to C$49.40. [ID:nN26176305]
 The rest of the big banks were all higher, including National Bank of Canada (NA.TO), which rose 2.1 percent to C$56.83 after it posted better-than-expected results. [ID:nN26182091]
 “Rather than a sector-wide phenomenon, it’s more what are the expectations that have been building up on those individual equities in that sector,” Chandler said.
 ($1=$1.05 Canadian)  (Reporting by Ka Yan Ng; editing by Peter Galloway)   

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