TSX Closes Up 54 Pts, But Was Up 100 Points At Half Way; Focus NowSwitches To BMO Q2 After Scotiabank Reported Today
Buoyed by reports of support for stimulus programs from the central banks of Europe and Japan, the Canadian main stock market, the Toronto Stock Exchange, enjoyed a strong run up over the first half of the session, and was up 100 points before midday. But just as excitement over these reported faded by the afternoon, so too enthusiasm for buying also faded. Especially as commodities remained mixed, which weighed on many stocks on the resources heavy index.
Reflecting the mixed nature of the day, Scotiabank (BNS.TO) ended the day flat having been down around 70 cents earlier, after it reported second quarter net income of $1,601 million compared with net income of $1,460 million in the same period last year. Adjusted diluted earnings per share were $1.24, compared to $1.16 in the same period a year ago. But this missed a target $1.26. Most divisions performed well, including its International division which sets it apart from its Canadian peers.
Focus will now switch to Bank of Montreal (BMO.TO), which will be the next of the big banks to report earnings, with its Q2 tomorrow. The forecast is for earnings of $1.49. BMO gained 0.6% and moved closer to year highs today.
Among most actively traded was Bombardier (BBD-B.TO), which rose more than 2% to stand shy of a year high $4.80, amid reports it is preparing to compete in the electric bus market. It has one of its prototypes as the showpiece on its display stand at one of the world's biggest transport exhibitions in Geneva, according to a report in the Globe and Mail newspaper.
July oil ended up 0.9% at US$95.01 a barrel. In Nigeria, news reports said pirates hijacked a fuel tanker in the West African region and took hostages. Also at the back of oil trader's minds, OPEC members will meet in Vienna on Friday. Meanwhile, August gold ended down 0.6% at US$1,379.70 per ounce.
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