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CANADA STOCKS-TSX ekes out gain on banks, resource stocks; TMX Group tumbles

Published 2017-10-03, 04:48 p/m
Updated 2017-10-03, 04:50 p/m
© Reuters.  CANADA STOCKS-TSX ekes out gain on banks, resource stocks; TMX Group tumbles

* TSX up 23.51 points, or 0.15 percent, at 15,728.51

* Four of TSX's 10 main industry groups were higher (Adds details, quotes, updates to close)

By Leah Schnurr

Oct 3 (Reuters) - Canada's benchmark stock index rose slightly on Tuesday as gains in the resource and financial sectors offset a decline in shares of TMX Group after Scotia Capital and Alberta Investment Management said they would cut their stake in the stock exchange operator.

Shares of TMX X.TO tumbled 4.1 percent to C$67.75 after the two companies agreed to reduce their stake in the owner of the Toronto Stock Exchange less than 5 percent apiece. of Nova Scotia BNS.TO , which owns Scotia Capital, edged up 0.6 percent at C$80.4.

The financial sector .SPTTFS overall helped support the market, rising 0.4 percent. Royal Bank of Canada RY.TO was the biggest lift on the index, rising 0.8 percent to C$97.83, while Toronto Dominion Bank TD.TO rose 0.6 percent to C$71.67.

The gains helped the Toronto market join in a global equity rally, with world shares extending a run of record highs amid encouraging U.S. data. MKTS/GLOB

If the positive tone holds, Toronto stocks could take a run at the record high set earlier this year, said Rick Hutcheon, president and chief operating officer at RKH Investments.

The index is just 1.3 percent away from February's intraday record level.

"People are beginning to realize rates aren't going down again any time soon," Hutcheon said. "If interest rates start going up, then bond valuations are going to go down because they're obviously inverse and then you start looking for a home for your money."

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The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 23.51 points, or 0.15 percent, at 15,728.51. Among the index's 10 main sector groups, just four were in positive territory.

Gold producers .SPTTGD climbed 0.9 percent as prices for the commodity turned up from a seven-week low. Teck Resources TECKb.TO advanced 3.3 percent to C$28.00, while First Quantum Minerals FM.TO was up 3.5 percent at C$14.99. GOL/

The larger materials sector .GSPTTMT , which includes miners of precious and base metals as well as fertilizer companies, rose 0.8 percent.

Shares of Pembina Pipeline Corp PPL.TO rose 1.1 percent to C$44.17 a day after the company said it has closed its acquisition of Veresen Inc. Capital Group HCG.TO gained 1.1 percent to C$14.12 after the mortgage lender said two senior executives would be leaving the company, the latest reshuffle in an effort to turn the business around. real estate sector .GSPTTRE reversed course to end down 0.1 percent after Canada's top banking regulator said new rules designed to cut out risky mortgage lending will be finalised this month and implemented within two to three months.

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