(Updates with analyst comment, market open prices)
Aug 26 (Reuters) – Canada’s main stock index rose on Tuesday, boosted by financial shares, as investors greeted strong results from Bank of Montreal and Bank of Nova Scotia, kicking off earnings season for the top domestic lenders.
At 9:51 a.m. ET (1351 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 0.16% at 28,214.41 points.
The financials index, which has the biggest weighting on TSX, jumped 0.56%, after BMO and Scotiabank
third-quarter earnings estimates on the back of easing trade tensions between Canada and the United States.
BMO and Scotiabank, which jumped 3% and 5%, respectively, in early trading, benefited from smaller-than-expected loan loss provisions.
“They’ve (bad loan provisions) been on a gradual trend, mostly up over the past couple of years. So if we’re seeing a break in that trend, that would be a clear positive for banks going forward and…
