Canada Stocks: Toronto market ekes out weekly gain as energy shares jump

Superior Plus

23/12/2022 21:34

(Adds details throughout; updates prices to close)

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      TSX ends up 156.99 points, or 0.8%, at 19,506.65
    

        * 
      For the week, the index advances 0.3%
    

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      Energy rises 4%; oil settles 2.7% higher
    

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      Materials group adds 0.8%
    

  
    By Fergal Smith
       TORONTO, Dec 23 (Reuters) - Canada's main stock index
rose on Friday and posted a small weekly gain as higher oil
prices bolstered energy shares, but worries that the economy was
headed for a recession next year helped limit the index's
advance.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 156.99 points, or 0.8%, at 19,506.65. For the
week, it gained 0.3%, after two straight weeks of declines.
    Wall Street's major indexes also rose as investors assessed
inflation data against rate hike and recession fears.    
    "Economic slowdown is the major trend that is moving
developed world markets in the last few months," said Brian
Madden, chief investment officer at First Avenue Investment
Counsel in Toronto. "In front of us is the looming risk of an
economic slowdown and a likely recession in Canada and the U.S."
    The Canadian economy grew by 0.1% in October and is expected
to expand at the same pace in November, a sign that the full
impact of seven consecutive interest rates hikes this year by
the Bank of Canada has yet to play out.
    The Toronto market's energy sector rose 4%, as oil prices
settled 2.7% higher at $79.56 a barrel. Supportive of oil,
Moscow said it could cut crude output in response to the G7
price cap on Russian exports.
    The materials group, which includes precious and base metals
miners and fertilizer companies, also gained ground, adding
0.8%.
    Commodity-fueled gains have helped the TSX outperform the
S&P 500  .SPX  so far this year, losing 8.1% versus a 19.3% drop
in the U.S. benchmark.
    Among the standouts on Friday was Superior Plus Corp
 SPB.TO .
    Its shares rose 8.6%, adding to the previous day's gains, as
brokerages raised their price targets on the stock following the
company's deal to buy mobile low-carbon fuels provider Certarus
Ltd.
 (Reporting by Fergal Smith; Additional reporting by Shashwat
Chauhan in Bengaluru; Editing by Alistair Bell)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446;))