Toronto Stock Exchange Holds Steady as Regulator Confirms Strong Bank Balance Sheets

By Robb M. Stewart

Despite positive news from the industry regulator regarding the strength of bank balance sheets, stocks traded on the Toronto Stock Exchange remained relatively unchanged.

Index Performance

• The S&P/TSX Composite Index increased by 6.46 points to reach 20,284.97 at midday.
• The blue-chip S&P/TSX 60 gained 0.12 point and stood at 1,222.93.
• However, both indexes are on track for a weekly decline of 0.8% and 0.7% respectively.

Sector Highlights

• The finance, technology, and energy sectors contributed to the market gains on Friday.
• Conversely, the communications and non-durable consumer stocks experienced losses.

Banking Sector

• Bank of Montreal led the major banks with a gain of 0.9%.
• Bank of Nova Scotia saw an increase of 0.6%.
• Royal Bank of Canada gained 0.7%.

Regulatory Update

The Office of the Superintendent of Financial Institutions has affirmed that the domestic stability buffer, which ensures banks have sufficient capital to withstand losses and maintain lending during challenging times, will remain at 3.5% of risk-weighted assets.

Other Market Highlights

• Canadian Western Bank's shares soared by 3.7% to C$31.35 following better-than-expected adjusted earnings in the fourth quarter. Additionally, the regional bank raised its quarterly dividend.