Canada Stocks: TSX adds to weekly winning streak as metal prices climb

Calibre Mining

18/10/2024 21:20

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      TSX ends up 0.5% at 24,822.54
    

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      For the week, the index adds 1.4%
    

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      Materials sector rises 3.2%
    

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      IAMGOLD jumps 16.6%
    

  
 (Updates at market close)
    By Fergal Smith
       Oct 18 (Reuters) - Canada's main stock notched on Friday
its third straight day of record closing highs, overcoming
uncertainty around the Middle East conflict and the upcoming
U.S. election, as metal mining shares jumped on higher gold and
copper prices.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 132.06 points, or 0.5%, at 24,822.54.
    For the week, the index added 1.4%. That's its sixth
straight weekly gain, which is the longest such stretch since
April.
    "It's a stealth rally," said Brandon Michael, senior
investment analyst at ABC Funds. "Everyone is so focused on the
noise — the looming U.S. election, geopolitics - and they’re
very skeptical."
    Some analysts have worried that stretched valuations for
some high-flying technology stocks and potential volatility
around the Nov. 5 U.S. presidential election could lead to a
market pullback.
    U.S. benchmark the S&P 500 has advanced nearly 23% since the
start of the year and the TSX is up 18.4% as central banks
globally, including the Bank of Canada, began easing campaigns.
    The BoC is widely expected to reduce its key policy rate by
50 basis points on Wednesday, which would be the first
super-sized reduction in 15 years outside of the pandemic era.
    "The earnings are beating expectations, the economy is
charging ahead, and there remains a massive amount of cash on
the sidelines ready to be deployed," Michael said.
    The materials sector rose 3.2% as new measures to boost
liquidity in the Chinese stock market helped drive up copper
prices, while gold extended its record-setting run.
    IAMGOLD Corp  IMG.TO  was a standout, with its shares
jumping 16.6% to reach a seven-year high.    
    Consumer discretionary  .GSPTTCD  added 0.5%, supported by a
2.9% rise in the shares of auto parts supplier Magna
International Inc  MG.TO .
    Energy limited the market's advance. The sector fell 0.4% as
the price of oil settled 2.1% lower.

 (Reporting by Fergal Smith in Toronto and Nikhil Sharma in
Bengaluru; Editing by Vijay Kishore and Alistair Bell)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))