(Updated at 10:20 a.m. ET/ 1520 GMT)

By Nikhil Sharma and Ragini Mathur

Dec 5 (Reuters) - Canada's main stock index rose

slightly on Monday in choppy trading, with investors assessing a

mixed set of quarterly earnings from top domestic lenders.

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

was up 13.49 points, or 0.05%, at 25,654.67, and was

trading near a record high.

TD Bank dropped 5.9% after warning of a challenging

2025 and suspending its medium-term earnings forecast as it

works through its anti-money laundering remediation program.

Canada's second-biggest lender faced a rare asset cap by

U.S. regulators after pleading guilty to violating anti-money

laundering laws and agreeing to pay $3 billion in penalties.

Additionally, Bank of Montreal ( BERZ ) missed analysts'

quarterly profit estimates.

In contrast, Canadian Imperial Bank of Commerce ( CM )

gained 4.3% as its quarterly profit surpassed forecasts after

setting aside smaller-than-expected loan loss provisions.

The top Canadian banks over the last year had allocated more

money to cover souring loans as clients struggled to pay their

mortgages and loans due to high interest rates.

"Overall, several of the Canadian banks have done fairly

well considering the circumstances," said Shiraz Ahmed, senior

portfolio manager and founder of Sartorial Wealth at Raymond

James.

The financial sector overall rose 0.05%.

Canada's energy sector gained 0.6%, as oil prices

climbed after OPEC+ delayed its planned output increase until

April 2025 and extended production cuts through 2026.

Consumer staples led the gains, rising 0.7%.

Ahmed added, "There'll be a rate decision here coming up

soon and it's likely going to be a cut. So given that, I think

that there is a renewed exuberance in the equity market."

Traders have fully priced in a rate cut by the Bank of

Canada next week but remain conflicted on the magnitude.

Among economic data, Canada recorded a bigger-than-expected

trade deficit of C$924 million ($657.60 million) in October.

Across the border, the U.S. weekly jobless claims increased

moderately last week.