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TSX ends down 0.6% at 23,126.98

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Materials group falls 2.1%

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Technology ends 1.6% lower

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RBC notches record high after profit beat

(Updates at market close)

By Fergal Smith

Aug 28 (Reuters) - Canada's main stock index extended

its pullback from a record high on Wednesday, as profit-taking

in most sectors of the market offset gains for financials after

stronger-than-expected earnings for two of Canada's major banks.

The Toronto Stock Exchange's S&P/TSX composite index

ended down 132.98 points, or 0.6%, at 23,126.98, its

second straight day of declines after notching an all-time high

on Monday.

Wall Street also lost ground, ahead of Nvidia's ( NVDA )

quarterly report after the closing bell.

"We had a great run so today's market declines on the TSX,

but also south of the border, can largely be attributed to

profit taking," said Elvis Picardo, a portfolio manager at Luft

Financial, iA Private Wealth.

The technology sector lost 1.6%, with shares of software

firm Kinaxis ( KXSCF ) tumbling 14.5% after the company said its

CEO will retire from his role.

The materials group, which includes metal miners and

fertilizer companies, was down 2.1% as gold and copper

prices fell.

The price of oil also dropped, settling 1.3% lower at

$74.52 a barrel, which weighed on energy.

"Here in Canada ... we've got our own little side show in

terms of bank earnings," Picardo said. "Investors have become

more discerning in terms of how they reward or punish companies

depending on whether they beat or miss earnings expectations."

Royal Bank of Canada ( RY ) shares rose 2.2% to notch a

record high after the bank surpassed quarterly profit estimates.

Smaller peer National Bank of Canada ( NTIOF ) also reported

better-than-expected quarterly earnings. Its shares jumped 5.9%.

In contrast, Bank of Montreal ( BERZ ) reported

lower-than-expected profit on Tuesday and Toronto-Dominion Bank ( MLWIQXX )

last week reported its first loss in over two decades.

TD Bank's efforts to resolve gaps in its anti-money

laundering controls by the end of the year will likely clear the

path for a new CEO, possibly an external candidate, according to

a straw poll of shareholders and analysts.