CANADA STOCKS-TSX helped higher by bank results, dividend payout

Tue Aug 28, 2012 10:36am EDT

* TSX up 10.22 points, or 0.08 percent, to 12,059.04
    * BMO results lift banking sector
    * Mining and energy stocks also higher

    By Alastair Sharp
    TORONTO, Aug 28 (Reuters) - Canadian stocks fought to stay
positive o n T uesday, with the financial sector boosted by Bank
of Montreal's solid results and dividend payout while most other
sectors weighed. 
    Shares in Bank of Montreal rose 1 percent to      
C$58.26 after the lender reported a 37 percent jump in quarterly
profit, topping expectations, and raised its quarterly dividend.
 
    Bank of Nova Scotia gained early in the session
before slipping 0.3 percent to C$52.80 after it said the sale of
its corporate headquarters in Toronto helped it post a 57
percent rise in third-quarter profit. It also raised its
dividend. 
    "Banks are living up to their reputation of regular dividend
increases and sharing the wealth with their shareholders," said
Fred Ketchen, director of equity trading at ScotiaMcLeod.
    Three of Canada's five main banks featured at the top of the
list of positive influences on the index. Royal Bank of Canada
, Toronto Dominion Bank and Canadian Imperial
Bank of Commerce all report on Wed nesday.
    But most other sectors, including the influential energy
group, were trading lower as investors worried about the
slowdown in the global economy.
    By 10:30 a.m. (1420 GMT) the Toronto Stock Exchange's
S&P/TSX composite index had gained 15.70 points, or
0.13 percent, to 12,064.52.
    Investors remain preoccupied by a meeting of U.S. and other
central bankers at the end of the week which could signal
direction for monetary policy in Canada's biggest trading
partner.
    European Central Bank President Mario Draghi will not attend
the annual Jackson Hole meeting as ECB policymakers hammer out
the details of a new bond-buying plan aimed at tackling the euro
zone debt crisis. 
    Easing monetary policy in the United States, Europe or China
would likely boost demand for a slew of metals and other
commodities, which would in turn influence Canada's
resource-rich index.
    "They're still looking for new stimulus to come in various
places in the world. If that happens, particularly the effect
from China would be growing demand for copper," Ketchen said.
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