(Adds comments; updates prices, details)
Scotiabank falls on larger loan loss provisions
TC Energy, Suncor expect 2023 costs to rise
GDP Q3 annualized data better than expected
Nov 29 (Reuters) - Canada's main stock index bounced on
Tuesday, tracking prices of crude oil and metals, although the
Bank of Nova Scotia kept gains in check after reporting a jump
in loan loss provisions in the fourth quarter.
At 10:09 a.m. ET (15:09 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 82.73 points, or 0.41%,
Scotiabank fell 1.7% as a lull in its investment
banking division dented income from its capital markets unit.
The financials sector slipped 0.1%.
"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.
As earnings from top Canadian banks start rolling in,
Schwartz expects them to increase bad debt provisions as
financial institutions brace for the most anticipated recession
Among gainers, the energy and materials sectors
rose between 1% and 2%, tracking prices of oil and
metals that rose on hopes that a relaxation of China's strict
COVID-19 controls would spur demand in the top consumer.
However, Suncor Energy Inc and TC Energy Corp
fell 1.2% and 3.6%, respectively, on higher 2023 cost
forecasts due to macro pressures, while TC Energy's costs were
also related to its delayed Coastal GasLink pipeline.
"Funding of capital expenditures for energy firms have gone
up with higher rates and so, if the Bank of Canada wanted to
slow the economy, I must say, it is working," Schwartz added.
Meanwhile, gross domestic product data rose at an annualized
rate of 2.9%, according to a Reuters poll, in the third quarter
driven by exports and non-residential structures.
Royal Bank of Canada edged higher on its deal to buy
HSBC's business in Canada for $10.04 billion.
($1 = 1.3441 Canadian dollars)
(Reporting by Johann M Cherian in Bengaluru; Editing by