Short-sellers Sniffing Banks -- Canadian Commentary

(RTTNews) - Canadian stocks inched lower Tuesday as traders weighed a flurry of news from the financial sector.

Investors were less than impressed with Scotiabank as it kicked off earnings season for the biggest banks.

The TSX Composite Index was down 12.48 points to 16,029.64, easing from a recent record high.

Scotiabank (BNS.TO, BNS) adusted earnings per share came up a few cents short of estimates despite higher revenues and growth in their Canadian banking business.

The bank also made an offer to buy a majority stake in a Chilean bank for $2.9 billion.

Scotiabank shares fell 2 percent.

Meanwhile, short-seller PAA Research has singled out rivals RBC and CIBC as the most suscepitble Canadian banks to a potential collapse in the housing market.

Struggling lender Home Capital Group (HCG.TO) says it is investigating the conduct of various short sellers. Shares were up 2 percent.

TransCanada (TRP.TO) said it expects comparable earnings before interest, taxes, depreciation and amortization (EBITDA) to grow at an average rate of about 10 percent through 2020.

The company's Keystone pipeline opened at reduced pressure today. Shares were flat.

In economic news, Canada's Industrial Product Price Index rose 1.0% in October, mainly due to higher prices for motorized and recreational vehicles. The Raw Materials Price Index increased 3.8%, primarily due to higher prices for crude energy products.