Canada stock index on course for best weekly performance in 31 weeks

Canada stock index on course for best weekly performance in 31 weeks

Oct 15 Reuters - Canada's main stock index lifted on Friday and was on course to its best weekly performance since March, as the energy sector rallied on the back of rising oil prices.

ET 13: 43 GMT the Toronto Stock Exchange's S&P TSX composite index was up 40.52 points, or 0.19%, at 20,860. The benchmark was set to post its best weekly gain in 31 weeks thanks to a 2.6% jump in miners and a 3.3% rise in technology stocks.

It feels like people got a little too bearish heading into earnings season and what we're seeing now is a bit of a short cover-off rally in the market as first glimpses we have had of earnings have been okay, said Gregory Taylor, portfolio manager at Purpose Investments.

Big U.S. financial institutions reported strong earnings this week, setting a positive tone in markets after fears over surging commodity prices, supply chain issues and inflation dogged equities.

Leading the charge in Canada on Friday, the energy sector climbed 1.8% to its highest since April 2019 as crude prices advanced more than 1%.

Financials, which account for about 30% of the index's market value, firmed 0.7% to a near two-month high.

But gains were capped by a 0.8% slide in material stocks, which includes precious and base metals miners and fertilizer companies, due to weakness in gold prices.

After a seven month win streak in September, the Canadian equity index has gained 3.7% this month.

Domestic wholesale trade of earlier in the day showed the official retail trade grew below expectations in August from July, while producer prices most likely rose by 1.0% in September.

First Quantum Minerals Ltd and MEG Energy Corp were the largest increasers on the TSX.

The TSX posted 15 new 52 week highs and no new lows.