Canada's main stock index notched a small gain on Thursday as two major banks rose after reporting quarterly numbers, while energy stocks weighed despite a late rally in crude prices. Shares in Canadian Imperial Bank of Commerce jumped 2.5 percent to C$89.66 after the bank beat on profit and raised its dividend, although, like other lenders that reported this week, CIBC reported rising bad loans in the oil and gas sector.
Its larger rival Toronto-Dominion Bank rose 1.4 percent to C$51.92 as its US presence benefited from a weak Canadian dollar and wholesale banking profit fell. "They're certainly not expensive," Paul Harris, portfolio manager at Avenue Investment Management, said of Canadian banks. "This doesn't mean that their loan books are not going to get worse in a period of time where resource companies in this country are under a lot of pressure."
The overall financials group gained 0.7 percent, while the energy group retreated 0.9 percent. Oil prices rebounded after confirmation of a meeting of major producers and as news of project delays and job cuts offset concern about oversupply in a slowing global economy. Canadian Natural Resources declined 2.1 percent to C$26.77, while TransCanada Corp fell 4.1 percent to C$48.73.
The Toronto Stock Exchange's S&P/TSX composite index ended the day up 13.33 points, or 0.1 percent, at 12,753.60. Six of the index's 10 main groups were lower. The materials group, which includes precious and base metals miners and fertilizer companies, added 0.2 percent. Kinross Gold Corp declined 6.9 percent to C$4.04 after announcing a bought deal financing.
Comments
Comments are closed.