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TSX extends weekly winning streak as commodities break higher

Published 03/15/2024, 07:25 AM
Updated 03/15/2024, 06:01 PM
© Reuters. FILE PHOTO: A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. REUTERS/Mark Blinch/File Photo
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By Fergal Smith

(Reuters) -Canada's main stock index edged higher on Friday to notch its fifth straight weekly gain, led by gains for the materials group as copper prices climbed to a near one-year high.

The Toronto Stock Exchange's S&P/TSX composite index ended up 19.3 points, or 0.1%, at 21,849.15, trading near its highest closing level since April 2022.

For the week, the index was up 0.5%. The weekly winning streak was the longest in 11 months.

"The big thing we're seeing is a nice rotation into some of the cyclicals," said Greg Taylor, a portfolio manager at Purpose Investments.

"That had been something that held back the TSX for the last six months ... but this week has been pretty positive with oil going over 80 bucks and copper breaking out over 4 (dollars)."

Copper rose 2% to trade at its highest level since April last year as investors weighed a potential output cut in top producer China, while oil settled at $81.04 a barrel, trading near a four-month high.

Resource shares have a roughly 30% weighting on the Toronto market. The materials group, which includes precious and base metals miners and fertilizer companies, added 1%.

© Reuters. FILE PHOTO: A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. REUTERS/Mark Blinch/File Photo

"We are seeing that rotation as the techs and semis (semiconductor stocks) that have been leading are coming under a little pressure," Taylor said.

The technology sector fell 0.8%, with shares of BlackBerry (NYSE:BB) Ltd falling 7.7%. Still, the sector has gained 6.5% since the start of the year.

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