CANADA STOCKS-Energy, materials push TSX higher; Scotiabank falls
BY Reuters | ECONOMIC | 11/29/22 10:32 AM EST(Adds comments; updates prices, details)
*
Scotiabank falls on larger loan loss provisions
*
TC Energy
*
GDP Q3 annualized data better than expected
By Johann M Cherian
Nov 29 (Reuters) - Canada's main stock index bounced on
Tuesday, tracking prices of crude oil and metals, although the
Bank of Nova Scotia
At 10:09 a.m. ET (15:09 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 82.73 points, or 0.41%, at 20,303.22.
Scotiabank fell 1.7% as a lull in its investment banking division dented income from its capital markets unit. The financials sector slipped 0.1%.
"If I was the CEO of a Canadian bank right now, I would look at my stock price and earnings that have held up well, and would seek to use this opportunity to protect the balance sheet just in case things worsen," said Barry Schwartz, portfolio manager at Baskin Financial Services.
As earnings from top Canadian banks start rolling in, Schwartz expects them to increase bad debt provisions as financial institutions brace for the most anticipated recession ever.
Among gainers, the energy and materials sectors rose between 1% and 2%, tracking prices of oil and metals that rose on hopes that a relaxation of China's strict COVID-19 controls would spur demand in the top consumer.
However, Suncor Energy Inc
"Funding of capital expenditures for energy firms have gone up with higher rates and so, if the Bank of Canada wanted to slow the economy, I must say, it is working," Schwartz added.
Meanwhile, gross domestic product data rose at an annualized rate of 2.9%, according to a Reuters poll, in the third quarter driven by exports and non-residential structures.
Royal Bank of Canada