Canada Stocks: TSX hits over 20-month high on commodity boost

Nexgen Energy

12/01/2024 15:30

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      TSX up 0.7%, hits highest in over 20 months 
    

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      Materials and energy lead gains
    

  
 (Updated at 10:12 a.m. ET/ 1512 GMT)
    By Purvi Agarwal and Amruta Khandekar
       Jan 12 (Reuters) - Canada's main stock index rose on
Friday, boosted by energy and mining stocks due to rising crude
and metal prices, while investors assessed softer U.S. inflation
data and earnings from big banks.
    At 10:12 a.m. ET (1512 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 139.22 points, or
0.67%, at 21,057.62. It touched its highest level since May
2022, earlier in the session, and is on track for a weekly gain
of 0.5%.
    The materials sector  .GSPTTMT , which includes miners and
fertilizer companies rose 1.8%, leading gains on the benchmark
index as precious metal prices gained on a weaker dollar.  GOL/ 
    Energy stocks  .SPTTEN  rose 1.2%, tracking gains in crude
prices following air and sea strikes by the United States and
Britain on Houthi targets in Yemen.  O/R 
    Some hopes of a speedy rate cut by the Federal Reserve were
restored after a softer-than-expected reading on U.S. producer
prices in December.
        Investors also assessed a mixed set of quarterly results
reports from U.S. banking giants including JPMorgan Chase
 JPM.N  and Bank of America  BAC.N .
  
        "We've got benign news from the banks and good news from
the inflation data. And I think the market on a Friday before a
long weekend is likely to see some unwinding", said Art Hogan,
chief market strategist at B Riley Wealth.
  
        "The unwinding would likely be to buy not to sell. I
think we're looking at a market that wants to trend the bit
higher", he added. 
  
        Information and technology  .SPTTTK  stocks outperformed
other sectors in the week, whereas healthcare  .GSPTTHC  lagged.
  
        Shares of Canadian uranium miners Cameco  CCO.TO ,
Denison Mines  DML.TO  and NexGen  NXE.TO  rose over 6% each
after Kazakhstan-based miner Kazatomprom flagged a production
shortfall in 2024.
    

 (Reporting by Purvi Agarwal and Amruta Khandekar in Bengaluru;
Editing by Ravi Prakash Kumar)
 ((Purvi.Agarwal@thomsonreuters.com))