TSX edges higher as TD rallies on strong beat, GDP tops forecast

Canada’s main stock index rose on Thursday as Toronto Dominion Bank TD.TO posted the strongest earnings beat among the country’s top banks and quarterly data showed Canada’s economic growth accelerated far more than expected.

TD Bank, Canada’s second-biggest lender, was by far the biggest influence on the index. Its shares rallied 2.9 percent to C$66.77 after it reported earnings that topped expectations by a wider margin than its rivals in a quarter in which Canadian banks have outperformed market forecasts. TD’s performance was bolstered by strong results from its North American retail businesses.

Canadian Western Bank CWB.TO was up 2.5 percent to C$29.42 following better-than-expected results.

Robust consumer spending and energy exports during the second quarter fueled Canada’s economy, which grew at its best pace in nearly six years. Gross domestic product grew at an annualized 4.5 percent, far more than the 3.7 percent economists had forecast, reinforcing expectations the Bank of Canada will raise interest rates in October.

At 10:32 a.m. ET (1432 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE rose 31.47 points, or 0.21 percent, to 15,164.6.

Of the index’s 10 main groups, seven were in positive territory. The heftily weighted financials group gained 0.4 percent.

Oil and gas stocks, which climbed 0.6 percent, were helped by crude oil prices that bounced more than 2 percent. Prices had suffered steep losses on demand concerns following record flooding from Hurricane Harvey in the United States that knocked out a quarter of the country’s refining capacity. [O/R]

Cenovus Energy (CVE.TO) rose 2.4 percent to C$9.66. Encana Corp ECA.TO rose 1.8 percent to C$11.60.

The materials group, home to resource firms, added 0.5 percent as gold miners benefited from bullion prices that rose on a weaker U.S. dollar. [GOL/]

Goldcorp Inc G.TO gained 1.2 percent to C$17.10.

Magna International Inc MG.TO was another influential gainer, up 1.3 percent to C$59.55. The company says it is developing a new self-driving vehicle system.

A 0.7 percent decline in consumer staples stocks, however, and a 0.6 percent fall in telecoms tempered gains.

Advancing issues outnumbered declining ones on the TSX by 149 to 93, for a 1.60-to-1 ratio on the upside.

The index posted 6 new 52-week highs and 1 new lows.