Banking stocks lift Toronto index as energy takes a breather

Canada's main stock index hit a record high on Wednesday as upbeat quarterly results from Royal Bank lifted financials, while energy shares were subdued for the first time in four days after oil prices steadied.

At 10:00 a.m. ET (1400 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 0.09% at 20,566.47 after hitting an intra-day high of 20,579.09 minutes after the open.

Royal Bank of Canada also hit an all-time high after the lender comfortably beat analysts' expectations for third-quarter profit, lifting the broader financial index by 0.6%.

"We've got a lot of sector rotation going on beneath the surface (in Canada) and all the cyclical sectors like energy, miners - which got hit a few weeks ago amid concerns of more lockdowns - have rebounded in the last few days," said Gregory Taylor, portfolio manager at Purpose Investments.

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Recouping losses from their biggest fall in more than a month last week, Canadian equities are tracking their seventh straight month of gains on global optimism about a steady post-pandemic economic recovery.

A Reuters poll found the stock index is now expected to rise only marginally by the end of the year, but then extend its record-setting rally in 2022.

Heavyweight technology stocks edged higher, tracking a rise in their US peers, which have shrugged off signs of slowing pace of economic growth to scale record highs.

Energy stocks were flat after surging 6% in the past three sessions on a bounce in oil prices.

HIGHLIGHTS

National Bank of Canada fell 1.0%, despite posting stronger-than-expected earnings.

The largest percentage gainers on the TSX were Lithium Americas and Canaccord Genuity, while Nuvei Corp and Iamgold Corp led the decliners.

The TSX posted 16 new 52-week highs and no new low.