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Wednesday, October 4, 2023

TSX gains as copper price jump boosts miners

TSX gains as copper price jump boosts minersTORONTO: Canada’s main stock index gained more than 1 percent in morning trade on Tuesday, helped by a jump in copper prices as weak Chinese data prompted bets that Beijing would move to stimulate the world’s second-largest economy.

The materials group, which includes miners, climbed 1.2 percent, with First Quantum Minerals Ltd surging 13.1 percent to C$ 7.01 and Teck Resources Ltd advancing 7.2 percent to C$ 8.75.

Copper climbed 3 percent after the data, which while mostly negative showed copper imports holding up.

The metal has rebounded about 9 percent since touching a six-year low in late August, largely on fears of a hard landing in China.

Still, investors expressed skepticism on the sustainability of the bounce.

“At this point I would say you’d still want to be cautious on the miners as well as the energy sector,” said Philip Petursson, managing director for capital markets and strategy at Manulife Asset Management.

“I think the pop today is really in relation to China and expectations of continued stimulus.

How much that helps to prop up the metals is subject to pretty wide debate. We’re still in a supply glut situation.”

At 10:33 a.m. ET (1433 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 169.86 points, or 1.26 percent, at 13,648.17. Nine of its 10 main groups were higher, with three advancers for every decliner.

The most influential movers on the index included several of its biggest banks, with Royal Bank of Canada rising 1.1 percent to C$ 71.67, and Bank of Nova Scotia adding 1.7 percent to C$ 59.49.

Manulife Financial Corp rose 1 percent to C$ 20.43 and Brookfield Asset Management advanced 1.5 percent to C$ 41.25.

The overall financials group, which makes up more than a third of the overall index weight, climbed 1.2 percent.

US crude prices were down 2.7 percent at $ 44.82 a barrel, while Brent crude added 1.2 percent to $ 48.18.

Copyright Reuters, 2015

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