TSX Rises as Energy and Mining Stocks Track Higher Oil
The TSX rose 0.18% as energy and mining stocks gained amid ceasefire uncertainty. Investors also weighed U.S. inflation data and a 10% jump in BlackBerry.
Canada's resource-heavy stock index rose on Thursday, lifted by gains in mining and energy stocks as investors monitored a fragile ceasefire between the United States and Iran. The S&P/TSX Composite Index was up 0.18% at 33,681.23 points by mid-morning, reflecting a cautious optimism despite ongoing geopolitical uncertainty.
The two-week ceasefire remains uncertain, with disagreements over whether the agreement covers Lebanon, where Israel targeted additional sites on Thursday. Diplomatic efforts are set to continue as delegates from Washington and Tehran prepare for peace talks in Pakistan on Friday.
In the energy sector, the subindex rose 1.6% as WT WTI CRUDE OIL prices hovered near $100 a barrel. Supply disruptions and damage to facilities in the Middle East have led investors to expect sustained higher prices. Brian Madden, chief investment officer at First Avenue Investment Counsel, commented on the market outlook.
Its unlikely were going to see oil back at $60 or $70 soon even if ceasefire holds.
The materials sector and the gold index gained 0.4%, tracking the performance of Gold. While five of the ten main TSX sectors were in the green, the heavily weighted financials sector edged down 0.02%.
Technology stocks limited the index's gains, falling more than 1%. E-commerce giant SHOPIFY INC - CLASS A dropped 2.7%, while BLACKBERRY LTD surged 10% after forecasting first-quarter revenue above estimates due to strong demand for cybersecurity and embedded software.
Investors also processed U.S. economic data, which showed that personal consumption expenditures rose 2.8% annually in February. Separate figures revealed that the U.S. economy grew 0.5% in the fourth quarter, slightly below the anticipated 0.7% growth rate.
