Please use symbol entry at top right of page to search

CANADA STOCKS-TSX gains as commodity prices rise; Scotiabank slips

(Adds details throughout; updates prices to close)


TSX ends up 56.92 points, or 0.3%, at 20,277.41


Energy rises 1.5%; oil settles 1.2% higher


Materials sector gains 3%


Scotiabank ends 2.5% lower

By Fergal Smith

TORONTO, Nov 29 (Reuters) - Canada's main stock index rose on Tuesday as higher commodity prices bolstered resource shares although gains were kept in check by a decline in Bank of Nova Scotia (BNS) shares after the company reported quarterly results.

The Toronto Stock Exchange's S&P/TSX composite index ended up 56.92 points, or 0.3%, at 20,277.41, moving closer to the five-month high it notched on Friday at 20,383.77.

Scotiabank reported a lower fourth-quarter profit and said it expects earnings next year to take a further hit as the economic downturn offsets gains from higher interest rates. Its shares ended 2.5% lower.

"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.

Canada's economy performed much better than expected in the third quarter, but an early indication that growth stalled in the fourth quarter could prompt the Bank of Canada next week to slow its campaign to hike interest rates.

The TSX will rally in the coming year and move to a record high in 2024 as inflation pressures ease and provided an anticipated slowdown in the domestic economy is not too deep, a Reuters poll found.

The energy sector rose 1.5% as the price of oil settled 1.2% higher at $78.20 a barrel on hopes for a relaxation of China's strict COVID-19 controls.

The materials group, which includes precious and base metals miners and fertilizer companies, added 3% as gold and copper prices rose.

HSBC (HSBC) agreed to sell its business in Canada to Royal Bank of Canada (RY) for C$13.5 billion ($10 billion) in cash. RBC's shares ended up 0.4%. (Reporting by Fergal Smith; Additional reporting by Johann M Cherian in Bengaluru; Editing by Richard Chang)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.