TSX pushes higher despite slumping banks

TORONTO: Toronto's main stock index closed near a four-week high on Friday as firmer commodity prices pushed up resource shares, overcoming a big drop in Royal Bank of Canada.

Gold and copper prices rose to near three-week highs, helped by a weaker US dollar, lifting the index's materials group to a 1.05 percent gain. In that group, three stocks -- Kinross Gold, diversified miner Teck Resources and fertilizer producer Potash Corp -- were the three most influential gainers on the index, accounting for 0.12 percent of its rise.

Kinross jumped 4.93 percent to C$15.76, while Teck climbed 2.38 percent to C$50.32, and Potash was up 1.15 percent at C$54.69.

The Toronto Stock Exchange's S&P/TSX composite index was up 21.69 points, or 0.16 percent, at 13,797.59. The TSX gained 1.06 percent for the week and closed at its highest level since May 2, when it finished at 13,934.51.

Eight of its 10 main groups were in positive territory. The hefty financial sector and the consumer staples group were the lone decliners.

Financials fell 0.82 percent with Royal Bank of Canada, the country's largest bank, by far the biggest drag after it reported a profit that rose but fell short of expectations due to weakness in its capital markets unit.

RBC also announced a higher dividend. But that didn't stop its shares falling 3.03 percent to C$57.36. The RBC drop was 4-1/2 times more influential on the index than that of next biggest downside mover -- Suncor Energy -- which was off 0.85 percent at C$40.75.

RBC's results came just a day after rivals Toronto-Dominion Bank and Canadian Imperial Bank of Commerce reported weaker-than-expected profits that sent their shares tumbling.

Several analysts cut share-price targets on CIBC, while TD received a pair of raises and one reduction.

"People are a little disappointed in the (bank) results as they've been coming out," said Michael Sprung, president of Sprung & Co Investment Counsel. "They've been on the low end of estimates. But overall they're not too bad. We are getting the dividend increases that we wanted to see."

Four of the top six decliners were banks.

Copyright Reuters, 2011