By Shristi Achar A
(Reuters) – Canada’s main stock index rose on Friday, on course to gain for the fourth straight week, boosted by financials after upbeat U.S. big bank earnings, while a drop in gold prices drove down mining stocks.
At 10:13 a.m. ET (1413 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 26.71 points, or 0.13%, at 20,591.2.
The heavily-weighted financials sector added 0.4%, mirroring gains in big U.S. banks.
“The read through to Canada is largely from the banks (in the U.S.) because the banks comprise about 20% of the weight of the Toronto Stock Exchange,” said Brian Madden, chief investment officer at First Avenue Investment Counsel.
“It is good news for the Canadian banks in general because they have operations in the United States, so that should bode well for their results in their US operations.”
The materials sector, which includes precious and base metals miners and fertilizer companies, however, was a laggard, down 0.9% as spot gold prices fell on rising bond yields. [GOL/]
The TSX is on track to gain 1.9% for the week, with energy and mining stocks, which form about 31% of the index boosting the commodity-inclined bourse, with consumer staples that account for 3.8% of the index, being the only laggard.
GRAPHIC – TSX Sectors’ weekly performance
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In company news, Loblaw Companies Ltd edged up 0.4% after the retailer said it would spend C$2 billion ($1.50 billion) to expand its business in 2023 and create more than 6,000 new jobs in retail, supply chain, technology and construction in Canada.
Shares of Teck Resources rose 2% after a report said the copper miner’s biggest shareholder China Investment Corp (CIC) backed Glencore’s takeover offer, which would allow investors to exit their coal exposure for cash.
(Reporting by Shristi Achar A in Bengaluru; Editing by Shailesh Kuber)
