Yahoo Finance TSX scales record high on mining boost
By Nikhil Sharma
(Reuters) -Canada's main stock index edged up to touch another record high on Friday as mining shares rose on higher gold prices, while energy stocks tracking lower oil prices limited overall gains.
The Toronto Stock Exchange's S&P/TSX composite index was up 32.7 points, or 0.13%, at 24,723.18, and was set to register its sixth consecutive weekly gain, its longest winning streak since the week of April 1.
Canada's materials sector was the biggest gainer, rising 1.6%, as gold prices hit a record high on expectations of further U.S. rate cuts, while uncertainty around U.S. presidential elections and Middle East conflicts also lifted bullion demand. [GOL/]
The consumer discretionary also gained, supported by a 2.6% rise in auto parts supplier Magna International.
In contrast, the heavyweight energy sector dragged 0.7% as oil prices fell over one percent and were set for the biggest weekly loss in over a month. [O/R]
One of the biggest drivers for overall weekly gains was the cooler-than-expected domestic inflation data on Tuesday that bolstered expectations for an unusually large interest rate cut by the Bank of Canada next week.
Markets see a 90.6% chance for a half-point cut, and if implemented, would also be the first super-sized reduction in more than 15 years outside of the pandemic era.
"You continue to see rates go lower (in Canada)" in coordination with global easing cycle, and thus "you should likely continue to see Toronto do fairly well," said Mike Archibald, portfolio manager at AGF Investments.
The TSX is up 18% for the year and could reach eight record closing highs out of 13 sessions since the beginning of this month if the trend holds.
Among individual stocks, Calibre Mining fell 5.9% after it announced third-quarter and year-to-date gold production.
On Wall Street, the benchmark S&P 500 and the tech-heavy Nasdaq edged higher on Friday as technology shares broadly advanced. [.N]
(Reporting by Nikhil Sharma in Bengaluru; Editing by Vijay Kishore)
