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TSX rises on commodity boost; eyes worst week in over two months

Kitco News

May 26 (Reuters) - Canadian shares opened higher on Friday, boosted by the gains in commodity-linked stocks but the benchmark index was set for its biggest weekly drop in more than two months, after a number of the country's top lenders reported disappointing results.

At 10:09 a.m. ET (14:09 GMT), the Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) was up 125.95 points, or 0.64%, at 19,900.03.

The TSX is set to post its fifth straight weekly loss, its longest weekly losing streak in over a year, with lenders dropping 3.3% this week, their worst week in more than two months.

"The big drag on the market this week were banks," said Greg Taylor, chief investment officer at Purpose Investments.

"We're definitely seeing increased expenses and some concerns of a recession creeping into the sector."

An unexpected uptick in inflation, a weak outlook for commodities and uncertainties concerning the U.S. debt ceiling also weighed on the Canadian markets.

The energy sector (.SPTTEN) added 0.7% on Friday, tracking steady crude oil prices, while materials sector (.GSPTTMT) climbed 0.8% on firm precious metals prices.

Canadian Western Bank (CWB.TO) shed 4.9% after saying it no longer expected to meet its annual pre-tax, pre-provision income and was targeting lower annual growth than it had previously expected.

Anaergia Inc (ANRG.TO) shed 4.7% after the waste treatment firm said that one of its units, Rialto Bioenergy Facility, initiated restructuring proceedings.

Pot stock Tilray Brands Inc tanked 18.9% on $150 million refinancing plans, while the broader healthcare sector (.GSPTTHC) tumbled 3.5%.

Silvercorp Metals Inc (SVM.TO) shed 6.1% after the miner missed analyst expectations on quarterly earnings and sales.

Teck Resources Ltd (TECKb.TO) added 1.5% after Nippon Steel Corp (5401.T) said it was still in talks with the miner, as Japan's top steelmaker remained eager to take a stake in Teck's high-grade coking coal asset, despite Glencore's (GLEN.L) bid for the miner.

Reporting by Johann M Cherian in Bengaluru; Editing by Rashmi Aich
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