CANADA STOCKS-TSX flat, hurt by weakness in banks, oil and gas

* TSX up 10.78 points, or 0.07 percent, at 14,480

* Banks and energy shares weigh

* Index on track for 1.8 pct fall on week (Adds portfolio manager’s comment, details, updates prices)

TORONTO, Dec 5 (Reuters) - Canada’s main stock index was flat on Friday, rattled by lusterless bank earnings and continued weakness in oil and gas shares, a day after its biggest single-day drop in 18 months.

Shares in Bank of Nova Scotia lost 2 percent to C$66.24 after Canada’s No. 3 lender reported a weaker-than-expected quarterly profit on previously announced charges related to soured bets in the Caribbean and Latin America.

Other banks whose results have failed to impress also slipped. Toronto-Dominion Bank was down 0.7 percent at C$53.67 and Canadian Imperial Bank of Commerce was off 1.3 percent at C$102.18.

“Somewhat lackluster (bank) earnings growth and concerns on weaker capital markets and loan growth,” combined with rich valuations to disappoint investors, said Philip Petursson, portfolio advisory group at Manulife Asset Management.

National Bank of Canada and Royal Bank of Canada were the only two of the country’s Big Six banks to have met or exceeded market expectations for fourth-quarter profits.

Gold miners were also among the biggest laggards, tracking the falling price of bullion after U.S. jobs data beat forecasts. Barrick Gold Corp lost 2.5 percent to C$13.24 and Goldcorp Inc fell 1.5 percent to C$22.41.

At midmorning, the Toronto Stock Exchange’s S&P/TSX composite index was up 10.78 points, or 0.07 percent, at 14,480.73. The index looked to be heading for a 1.8 percent weekly decline. It ended last week at 14,744.75.

With the rout in oil prices showing no signs of abating, energy producers also weighed, although Manulife’s Petursson said some could prove very attractive once crude prices recover, which he expects will take a quarter or two.

“On the belief that oil prices are not likely to remain this low for an extended period of time, then there are definitely some bargains to be had with the oil producers,” he said.

($1=$1.14 Canadian)

Reporting by Alastair Sharp; Editing by Peter Galloway