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Banks buoy Toronto stocks
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November 20, 1998: 12:18 p.m. ET
Exchange rises 1.3 percent on back of earnings season and overseas markets
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NEW YORK (CNNfn) - Toronto stocks strengthened Friday, boosted greatly by banking stocks as earnings season for the Big Six Canadian banks was well under way. Strong overnight performances by overseas markets also helped fuel the rise.
The Toronto Stock Exchange Composite 300 index rose 82.68 points, or 1.28 percent, to 6,522.30.
But some expressed doubts as to the substance and rationale of the rally.
"It's a hot market, and there's a lot of momentum behind it. I don't think it's being led fundamentally. It's basically a frenzy," said Jeff Milligan, a U.S. investment specialist at Priority Brokerage.
"It's a momentum thing and a liquidity thing. You're looking at pretty insane valuations right now."
Milligan added that he expects the frenzy to continue as fund managers, who are sitting on the sidelines with more than $6 billion in cash, will inject it into the economy before the end of the year.
Overall on the exchange, a small majority of the 14 subindexes finished the day with gains, led by the financial-services sector, which moved up 4.35 percent, metals and minerals stocks, which added on 1.88 percent, and the real estate and construction sector, which climbed 1.58 percent.
Of those sectors that posted a loss, merchandising dropped the most - 0.78 percent - followed by oil and gas with a 0.68 percent loss. The pipelines group and gold and precious metals stocks also posted losses.
Among the top 10 volume leaders, most posted big gains, led by banks. Canadian Imperial Bank jumped C$2.85, or 8.80 percent, to C$35.25. Bank Nova Scotia rose C$1.60, or 4.98 percent, to C$33.70. And Toronto-Dominion Bank, which reported fourth-quarter earnings Thursday that met analysts' expectations, moved up C$4.00, or 8.62 percent, to C$50.40.
Elsewhere in the country, stocks in Montreal rose 67.63, or 2.06 percent, to 3,354.95. In Vancouver, shares closed flat but slightly down, slipping 0.69 points, or 0.17 percent, to 395.88. 
-- from staff and wire reports
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