(Adds details throughout; updates prices to close)
TSX ends up 56.92 points, or 0.3%, at 20,277.41
Energy rises 1.5%; oil settles 1.2% higher
Materials sector gains 3%
Scotiabank ends 2.5% lower
TORONTO, Nov 29 (Reuters) - Canada's main stock index
rose on Tuesday as higher commodity prices bolstered resource
shares although gains were kept in check by a decline in Bank of
Nova Scotia shares after the company reported quarterly
The Toronto Stock Exchange's S&P/TSX composite index
ended up 56.92 points, or 0.3%, at 20,277.41, moving
closer to the five-month high it notched on Friday at 20,383.77.
Scotiabank reported a lower fourth-quarter profit and said
it expects earnings next year to take a further hit as the
economic downturn offsets gains from higher interest rates. Its
shares ended 2.5% lower.
"If I was the CEO of a Canadian bank right now, I would look
at my stock price and earnings that have held up well, and would
seek to use this opportunity to protect the balance sheet just
in case things worsen," said Barry Schwartz, portfolio manager
at Baskin Financial Services.
Canada's economy performed much better than expected in the
third quarter, but an early indication that growth stalled in
the fourth quarter could prompt the Bank of Canada next week to
slow its campaign to hike interest rates.
The TSX will rally in the coming year and move to a record
high in 2024 as inflation pressures ease and provided an
anticipated slowdown in the domestic economy is not too deep, a
Reuters poll found.
The energy sector rose 1.5% as the price of oil settled 1.2%
higher at $78.20 a barrel on hopes for a relaxation of China's
strict COVID-19 controls.
The materials group, which includes precious and base metals
miners and fertilizer companies, added 3% as gold and copper
HSBC agreed to sell its business in Canada to Royal
Bank of Canada for C$13.5 billion ($10 billion) in cash.
RBC's shares ended up 0.4%.
(Reporting by Fergal Smith; Additional reporting by Johann M
Cherian in Bengaluru; Editing by Richard Chang)