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Resources, banks send Toronto stocks higher

28/08/08

TORONTO (Reuters) - The Toronto Stock Exchange's main index shot higher on Thursday, buoyed by strength in commodity-related stocks and Royal Bank of Canada , which delivered stronger-than-expected results.

Shortly after the open, the S&P/TSX composite index <.GSPTSE> was up 120.36 points, or 0.9 percent, at 13,651.01, with nine of its 10 main groups higher. The lightly-weighted healthcare group slipped 0.6 percent.

Financials raced 1.3 percent higher with RBC up 3 percent at C$46.71. Early on Thursday, Canada's biggest bank said third-quarter profit fell 10 percent after taking C$498 million in write-downs, but the charges were lower than many had feared and underlying profit beat market expectations.

The remainder of Canada's big banks also cheered.

Third-quarter net income slipped at Toronto-Dominion Bank , as a difficult capital markets environment reduced profit in its wholesale business, but the bank raised its dividend. TD rose 2 percent to C$60.57.

National Bank of Canada jumped 4.5 percent to C$50.68 after it said its third-quarter profit climbed on better results in its financial markets and retail banking units, as well as a gain on a Canadian exchange merger.

The heavyweight energy and materials sectors were up 0.7 percent and 1 percent, as oil rose for a fourth day, pushed up by the threat that Tropical Storm Gustav could damage U.S. oil installations, and gold was higher.

Agnico-Eagle rose 2 percent to C$61.70 and Goldcorp was up 3 percent at C$36.85.

Suncor Energy climbed 1.4 percent to C$61.10 and Canadian Natural Resources was up 0.5 percent at C$90.85.

($1=$1.05 Canadian)

(Reporting by Jennifer Kwan; Editing by Scott Anderson)

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