CANADA STOCKS-TSX climbs as stimulus comments offset Scotiabank dip
* TSX rises 76.31 points, or 0.60 percent, to 12,772.68 * Scotiabank stumbles after results * Gold shares fall after bullion price decline By John Tilak TORONTO, May 28 (Reuters) - Canada's main stock index advanced on Tuesday, led by the energy and financial sectors, as investors were encouraged by signs of support for stimulus programs from the Japanese and European central banks. The gains were capped by a decline in Bank of Nova Scotia , after the lender reported quarterly results, and by a drop in shares of gold producers after the price of bullion tumbled. The European Central Bank can still cut interest rates further to stimulate the economy if needed and it is vital for the Bank of Japan to keep long- and short-term interest rates stable, board members at the respective banks said. "The market is betting that the stimulus won't be removed for some time yet," said Fergal Smith, managing market strategist at Action Economics. The Toronto Stock Exchange's S&P/TSX composite index was up 76.31 points, or 0.60 percent, at 12,772.68. Eight of the 10 main sectors on the index were higher. A surge in oil prices, supported by rising Middle East risk and positive investor sentiment, helped energy shares gain 1.2 percent. Financials, the index's most heavily-weighted sector, added 0.8 percent, with the Scotiabank weakness being offset by gains in other banks. Royal Bank of Canada climbed 1.3 percent to C$64.10 and played the biggest role of any single stock in leading the market higher. Scotiabank's second-quarter profit rose 9.6 percent, falling short of expectations, with the increase driven by last year's acquisition of online lender ING Direct. The stock gave back 0.6 percent to C$59.28. The lender was the only one of the country's sixth largest banks to decline and was one of the biggest drags on the market. The materials sector, which includes mining stocks, was down 0.6 percent after shares of gold miners, lost 1.4 percent. Goldcorp Inc fell 1.9 percent to C$27.37, and Barrick Gold Corp slipped 1.7 percent to C$19.72.
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