Toronto stocks rebounded on Thursday from Wednesday’s big income trust selloff as investors bought up shares of dividend-paying financial services companies.

The S&P/TSX composite index gained 80.34 points, or 0.7%, at close at 12,130.73.

Overall, six of the 10 main TSX groups were up.

The financials group led the way, climbing 2.3% .

Manulife rose $1.36, or 3.7%, to a record high of $38.10 as the insurer reported record net income and raised its quarterly dividend 14%.

Royal Bank of Canada was up $1.20, or 2.4%, at $51.60, while Toronto-Dominion Bank added $1.69, or 2.6%, to $67.18.

Some income trusts managed to bounce back from Wednesday’s selloff, while others sank further.

The income trust subindex which tracks 75 of the TSX’s 253 trusts, closed the day down 4.3% after losing 12.4% in the previous session.

Yellow Pages Income Fund (climbed 34¢, or 2.8%, to $12.60, while Penn West Energy Trust lost another $2.37, or 6.6%, to $33.75.

In Ottawa, Finance Minister Jim Flaherty said there was no chance Telus Corp. would be grandfathered under the new rules that tax trusts. Telus was up $1.58, or 2.8%, at $57.73.

The Canadian dollar was down 0.01 of a cent to US88.21¢.

The S&P/TSX Venture composite index rose 11.7 points to 2,596.95.

U.S. stocks ended lower, with the Dow Jones industrial average closing down for a fifth day, after Wal-Mart Stores Inc. gave a disappointing sales forecast and economic data raised worries about inflation and slow growth.

The Dow fell 12.48 points to 12,018.54.

The Nasdaq inched 0.33 of a point lower to 2,334.02, while the S&P 500 index gave back 0.47 of a point to 1,367.34.