Published: May 25, 2023 at 12:06 p.m. ET
By Adriano Marchese
Indexes in Toronto were lower at midday Thursday, out of step with U.S. markets that are posting some gains. The majority of Canadian sectors were in red territory, led by energy and process industries, while tech and consumer services were among the few gainers of the session. Canadian banks continued their second-quarter earning results, with misses by Canada’s two largest banks by market cap, Toronto-Dominion Bank and Royal Bank of Canada, while Canadian Imperial Bank of Commerce posted better-than-expected…
By Adriano Marchese
Indexes in Toronto were lower at midday Thursday, out of step with U.S. markets that are posting some gains. The majority of Canadian sectors were in red territory, led by energy and process industries, while tech and consumer services were among the few gainers of the session. Canadian banks continued their second-quarter earning results, with misses by Canada’s two largest banks by market cap, Toronto-Dominion Bank and Royal Bank of Canada, while Canadian Imperial Bank of Commerce posted better-than-expected earnings in the period.
At midday, Canada’s S&P/TSX Composite Index was down 0.99% to 19731.23. The blue-chip S&P/TSX 60 was also down, dropping 1.06% to 1186.84.
Toronto-Dominion Bank shares were down 3.5% at 78.34 Canadian dollars ($57.63) after the Canadian financial institution reported a drop in profit in its second quarter, despite revenue growth in line with analyst expectations. The company cited provisions for credit losses that continued to climb in the period as a contributing factor.
Other market movers:
Royal Bank of Canada shares were down 2.7% to C$120.43 after reporting better-than-expected revenue in its fiscal second-quarter but a decline in profit after booking a larger provision for credit losses.
Canadian Imperial Bank of Commerce bucked the trend of declines among the “Big 6” banks, rising 2% to C$56.77 after reporting an increase in fiscal second-quarter profit and revenue growth in line with analyst expectations, propped up by a strong performance from its Canadian personal and commercial unit.
Write to Adriano Marchese at adriano.marchese@wsj.com
