(Recasts with market reaction, analyst comment, details)
* TSX down 12.66 points, or 0.10 percent, to 13,138.27
* Five of the TSX's 10 main groups down
By Solarina Ho
TORONTO, Aug 26 (Reuters) - Canada's benchmark stock index
was flat on Wednesday, paring earlier gains as investors failed
to shake off concerns over slumping growth in China.
The TSX jumped more than 1 percent at the open to a high of
13,360.49, but failed to sustain the rally.
"We're still trying to consolidate after the dramatic moves
this week. The intraday swings left only the aggressive traders
who are bottom pickers in this market," said John Ing, president
of Maison Placements Canada.
"Most investors are staying on the sidelines, just seeing
how the dust settles," he said.
At midday EDT (1600 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE fell 12.66 points, or 0.10
percent, to 13,138.27.
Royal Bank of Canada RY.TO , which reported a sharp spike
in energy sector bad loans for the third quarter, was the
biggest drag on the index, falling 2.3 percent to C$70.65.
Strength in personal and commercial banking helped the
country's biggest lender top profit expectations, but the bad
loans demonstrated the impact the plunge in oil prices were
having on Canadian banks. ID:nL1N1110EG
The heavily weighted financials group was steady, up just
0.1 percent, as Canada's other top banks made gains. Bank of
Nova Scotia BNS.TO advanced 0.9 percent to C$57.44.
Goldcorp Inc G.TO was another top drag, sinking 2.8
percent to C$17.93, while Barrick Gold Corp ABX.TO tumbled 4.5
percent to C$8.97
The overall materials group, home to mining companies, sank
2.2 percent as gold prices tumbled on a stronger U.S. dollar.
Gold futures GCc1 fell 1.5 percent to $1,121.4 an ounce.
GOL/
Energy stocks, which have had a dismal summer and touched
the lowest level since December 2003 on Monday, were generally
more positive on Wednesday. Cenovus Energy Inc CVE.TO rose 1.8
percent to C$16.79.