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CANADA STOCKS-TSX flat as banks weigh, gold miners gain

Published 2017-02-27, 10:48 a/m
© Reuters.  CANADA STOCKS-TSX flat as banks weigh, gold miners gain

(Adds details on specific stocks, updates prices)

* TSX down 22.7 points, or 0.15 percent, at 15,510.77

* Seven of the TSX's 10 main groups move lower

TORONTO, Feb 27 (Reuters) - Canada's main stock index was barely lower in morning trade on Monday, with investors pulling back from major banks ahead of their earnings later in the week, while gold miners and energy stocks gained with higher commodity prices.

Valuations in Canada's financial services sector have risen steadily since early 2016 and particularly since the U.S. election in November on expectations of softer financial regulation, lower tax rates and higher interest rates.

Investors are waiting for U.S. President Donald Trump to outline plans for tax cuts, infrastructure spending, levies on imports and foreign policy in a speech on Tuesday night.

Auto parts maker Magna International Inc MG.TO , which is sensitive to the possibility of a border adjustment tax, advanced 2.1 percent to C$57.62 after falling sharply on Friday, when the index notched its steepest fall in over five months.

At 10:40 a.m. ET (1540 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE fell 3.21 points, or 0.02 percent, to 15,530.26. Seven of its 10 main sectors fell.

The index is trading near its lowest since Feb. 8, after hitting an all-time high last week.

Bank of Nova Scotia BNS.TO fell 0.7 percent to C$79.82 and Bank of Montreal BMO.TO slipped 0.4 percent to C$99.55. Both banks are due to report quarterly earnings on Tuesday.

Toronto-Dominion Bank TD.TO , which reports on Thursday, lost 0.8 percent to C$68.74 and National Bank of Canada NA.TO , which reports on Wednesday, declined 0.4 percent to C$99.55.

Gold miners gained as the precious metal steadied near to the 3-1/2 month highs hit last week. Gold Corp ABX.TO advanced 1.3 percent to C$25.93 and Goldcorp Inc G.TO advanced 2.0 percent to C$22.135.

Pipeline company Enbridge Inc ENB.TO advanced 1.2 percent to C$54.84 after announcing the completion of its acquisition of Spectra Energy Corp (NYSE:SE). The broader energy group climbed 0.7 percent, with oil prices up as investors showed record confidence in prices rising further. Pharmaceuticals International Inc VRX.TO advanced 3.2 percent to C$21.87 after the company said it would expand by 40 percent the sales force for its Salix gastrointestinal unit.

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