August 28, 2009 / 8:55 PM / 10 years ago

CANADA STOCKS-TSX higher on day and week as resources shine

* TSX up 44.01 points, or 0.4 percent, at 10,977.97

* Index up 1.4 percent for the week

* Financials off 1.1 percent, cut into week’s gains

* Scotiabank falls 3.6 pct; results beat forecasts (Adds details)

TORONTO, Aug 28 (Reuters) - Toronto’s main stock index see-sawed on Friday but managed to end slightly higher as resource shares rose on commodity strength, overcoming weakness in the hefty financial group.

The big energy and materials sectors, which combined make up around 45 percent of the index’s total weighting, gained momentum by mid-afternoon to pull the broader index higher after an uncertain early performance.

Gold touched $960 an ounce and oil settled higher at $72.74 a barrel, helping to lift the resource sectors.

The materials group was up 1.4 percent, while the energy group advanced 1.2 percent.

Influential names on the rise included Goldcorp (G.TO), up 2.6 percent at C$40.48, and Barrick Gold (ABX.TO), ahead 3.1 percent at C$38.73. EnCana Corp (ECA.TO) climbed 2.4 percent to C$58.45.

The S&P/TSX composite index .GSPTSE closed up 44.01 points, or 0.4 percent, at 10,977.97, with seven of its 10 main sectors higher. The index is up 1.4 percent for the week.

Following financial sector strength earlier this week, investors shifted tack and rotated money into commodity-associated groups, said Paul Gardner, a partner and portfolio manager at Avenue Investment Management.

“The commodities certainly lagged. They didn’t participate in this week’s rally in the financial sector,” he said.

Financials were off 1.1 percent after rising 2.3 percent in the previous session, with Bank of Nova Scotia (BNS.TO) sliding 3.6 percent to end the day at C$46.40, leading the parade influential decliners, including some of its peers.

Scotiabank posted a lower profit on Friday as it set aside more money to cover bad loans. While the results topped expectations it failed to help the overall financial sector keep pace with the near-6 percent gains of the last three sessions [ID:nN27323386].

“I think it would be fair to say that the banks stocks have had a tremendous run here. A lot of them have doubled from their bottoms, which was only 5-1/2 months ago. So you may have a little bit of profit-taking going on here,” said Bob Gorman, chief portfolio strategist at TD Waterhouse.

“Given that the bank stocks versus most metrics, at least in the short- and medium-term, look pretty fairly valued here so that’s not at all surprising.”

Several brokerages also raised price targets or ratings on the banks following their latest results, spurring the ascent of financial stocks earlier this week.

Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO), and National Bank of Canada (NA.TO) received upgrades on Friday. [RCH/CA] [ID:nBNG509593]

$1=$1.09 Canadian Reporting by Jennifer Kwan and Ka Yan Ng

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below