* TSX up 63.83 points, or 0.42, at 15,292.40
* Eight of 10 main index sectors advance
* Energy shares slip with oil prices
By John Tilak
TORONTO, Feb 26 (Reuters) - Canada’s main stock index reached its highest in a week on Thursday as gains in Toronto Dominion Bank and Canadian Imperial Bank of Commerce , following quarterly reports from the two lenders, overcame weakness in the energy sector.
TD advanced 2.1 percent, to C$55.06, after the company posted a slightly higher profit in line with expectations, as gains at its retail division offset weakness in wholesale banking.
CIBC reported better-than-expected first-quarter earnings, helped by strong growth in its wholesale banking business, and unexpectedly raised its dividend. The stock jumped 4.2 percent to C$96.07.
Despite the sharp slump in oil prices over the past several months, the commodity-focused TSX has been climbing. It is up about 12 percent since hitting a low in December.
“There is a disconnect between Canadian stock prices and the meaningful retracement we’ve seen in commodity prices,” said Paul Taylor, chief investment officer at BMO Asset Management Canada, who is underweight on Canadian equities.
“We’re either looking at Canadian equity markets with rose-colored glasses and we are wrong, or earnings for the TSX are going to be meaningfully lower,” he added.
The Toronto Stock Exchange’s S&P/TSX composite index was up 63.83 points, or 0.42, at 15,292.40. Eight of the 10 main sectors on the index were higher.
Boosted by the gains in TD and CIBC, the financial sector climbed 1.2 percent. Bank of Nova Scotia, which is expected to report results next week, rose 2.2 percent to C$67.26.
Shares of energy producers slipped, reflecting a 3.1 percent drop in the price of U.S. crude oil. Canadian Natural Resources Ltd lost 1.3 percent to C$37.12, and Suncor Energy Inc gave back 0.9 percent to C$38.02.