CANADA STOCKS--Bank results, U.S. data drive TSX gains

Thu Aug 29, 2013 4:14pm BST

Related Topics

* TSX rises 46.73 points, or 0.37 percent, to 12,653.95
    * Seven of 10 main index sectors advance
    * TD, RBC jump after results, dividend increases
    * Gold-mining shares slip with price of bullion

    By John Tilak
    TORONTO, Aug 29 (Reuters) - Canada's main stock index
climbed on Thursday, led by gains in financials, as bullish
quarterly profit reports from major Canadian banks and strong
economic data from the United States buoyed sentiment.
    The U.S. economy accelerated more quickly than expected in
the second quarter, helped by a surge in exports, bolstering the
case for the Federal Reserve to begin dialing back its bond
buying program. 
    Investor anxiety about Syria eased a little after signs
pointed to a delay in military action by at least several days
while the case was laid out to U.S. and British lawmakers.
 
    But that pulled down the prices of gold and oil, weighing on
shares of the commodities' producers.
    Royal Bank of Canada and Toronto Dominion Bank
, Canada's two biggest lenders, reported quarterly
earnings that topped market expectations and raised their
dividends. The two stocks had the biggest positive influence on
the market.  
    Canadian Imperial Bank of Commerce's third-quarter
profit rose 6 percent, driven by stronger retail banking and
wealth management income. 
    "The health of the industry is very strong. It's been
reflected in the results," said Victor Kuntzevitsky, an
associate at Northland Wealth Management. "The only issue (for
the banks) is whether the real estate market in Canada will
continue to grow."
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 46.73 points, or 0.37 percent, at 12,653.95.
    Seven of the 10 main sectors on the index were higher.
    Financials, the index's most heavily weighted sector, jumped
1.2 percent.
    TD added 1.9 percent to C$89.21, RBC climbed 1.3 percent to
C$65.33, and CIBC rose 2 percent to C$82.
    The materials sector, which includes mining stocks, gave
back 1.2 percent. Gold-mining shares slipped 2 percent after 
bullion dropped. 
    Goldcorp Inc shed 1.5 percent to C$30.49, and Barrick
Gold Corp was down 1.3 percent to C$20.
    With the price of oil declining, shares of energy producers
lost 0.3 percent. Suncor Energy Inc fell 0.7 percent to
C$36.21.
    Investors are hesitant to make big bets at this point,
Kuntzevitsky said. "Nobody wants to make that large market
call."
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