The Toronto Stock Exchange’s S&P/TSX composite index closed higher on Tuesday, led by gains in the energy and materials sectors. The index ended up 32.79 points or 0.2% at 19,657.53. Lundin Mining (OTC:LUNMF) Corp also hit a three-week high after purchasing a majority stake in a copper mine.
The recent gains mark the second consecutive trading session of gains for the Toronto Stock Exchange, which is heavily weighted towards commodities and financials. Greg Taylor, a portfolio manager at Purpose Investments, notes that the TSX has underperformed other indices this month, but the recent rotation towards banks and energy stocks is a positive sign for the index.
Materials Sector Gains on Bullion Prices
The broader materials sector, which includes gold and base metals miners, as well as fertilizer companies, closed 0.9% higher, tracking gains in bullion prices. As the demand for safe-haven assets increased, the price of gold also increased, driving gains in the materials sector.
Energy Stocks Climb Amid Supply Disruption Risks
Energy stocks climbed 1.4% on Tuesday, tracking oil prices. The supply disruption risks from Iraqi Kurdistan drove the increase in oil prices, which in turn led to gains in the energy sector. Despite the recent gains, the TSX composite index is still 4.5% weaker since the collapse of Silicon Valley Bank and Signature Bank earlier this month triggered fears of a banking crisis.
Conclusion
In conclusion, the Toronto Stock Exchange’s S&P/TSX composite index closed higher on Tuesday, led by gains in the energy and materials sectors. Lundin Mining’s majority stake in a copper mine also drove its three-week high. Although the TSX composite index is still weaker since the collapse of Silicon Valley Bank and Signature Bank earlier this month, the recent rotation towards banks and energy stocks is a positive sign for the index. As the demand for safe-haven assets increased, the price of gold also increased, driving gains in the materials sector. The supply disruption risks from Iraqi Kurdistan drove the increase in oil prices, which in turn led to gains in the energy sector.
