TORONTO (Reuters) - Toronto's main stock index rose on Thursday morning after three days of losses as investors looked past weak bank earnings in anticipation of improved performance by the financial sector in the coming year.
After beginning the day in negative territory, the S&P/TSX composite index <.GSPTSE> quickly gained steam and at 10:10 a.m. was up 136.79 points, or 1.65 percent, at 8,433.75, with all of its 10 main sectors higher.
Financials rose 1.7 percent with Toronto-Dominion Bank
Canadian Imperial Bank of Commerce
"I presume people are bargain-hunting at this point in time. They're all fairly depressed, the yields are exceptional," said Michael Sprung, president at Sprung & Co Investment Counsel.
"I think the market was far more prepared for write-downs and given that this is the fourth quarter I think everyone would be anticipating that the banks would be trying to take as many charges as they can at the end of what has already been a disastrous year in hopes that next year will look relatively much better."
The big resource sectors got a boost as oil and gold prices trimmed earlier losses.
The energy sector rose 0.6 percent with EnCana Corp
The resource-laden materials group rose 3 percent with Barrick Gold
($1=$1.26 Canadian)
(Reporting by Jennifer Kwan; editing by Peter Galloway)
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