TSX Down 80 Pts, Weighed Down By Banks: Reuters Poll Suggests Index Will Rise in 2012
The Toronto Stock Exchange's S&P/TSX composite index was down around 70 points inside the last hour of trading Thursday, not helped by lower bank stocks on talk of a disappointing outlook for them in 2012.
Canadian Imperial Bank of Commerce (CM.TO) is now down more than 1% and has hit a day low $71.66 on poor outlook comments for 2012 having gone as high as $73.16 earlier in the day on its Q4. "Looking forward, the external environment remains very uncertain," CIBC Chief Executive Gerry McCaughey reportedly said on a conference call. "Interest rates are expected to remain low and growth rates in consumer credit are expected to slow down slightly."
Toronto-Dominion Bank's (TD.TO) has lost early gains that saw it touch a day high $73.94 today after the release of its Q4 results and it is now down 2% and has hit a day low of $71.64 on a disappointing outlook statement. TD Canadian Banking Group chief Tim Hockey reportedly said in a statement that earnings growth for the group would likely moderate in 2012.
Meanwhile, a Reuters poll suggests Canadian stocks will rise in 2012 as policymakers iron out the euro zone's sovereign debt crisis and improving economic data in Canada and the United States soothe investor concerns about global growth.
Firmer Canadian and U.S. fundamentals will help send the commodity-linked Toronto Stock Exchange's S&P/TSX composite index to 12,225 by mid-2012, and to 12,500 by year's end, according to median forecasts from 26 analysts polled over the past week.
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