Make Kitco Your Homepage

Off The Wire

TSX rises on commodity boost; eyes worst week in over two months

Kitco News

May 26 (Reuters) - Canadian shares opened higher on Friday, boosted by the gains in commodity-linked stocks but the benchmark index was set for its biggest weekly drop in more than two months, after a number of the country's top lenders reported disappointing results.

At 10:09 a.m. ET (14:09 GMT), the Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) was up 125.95 points, or 0.64%, at 19,900.03.

The TSX is set to post its fifth straight weekly loss, its longest weekly losing streak in over a year, with lenders dropping 3.3% this week, their worst week in more than two months.

"The big drag on the market this week were banks," said Greg Taylor, chief investment officer at Purpose Investments.

"We're definitely seeing increased expenses and some concerns of a recession creeping into the sector."

An unexpected uptick in inflation, a weak outlook for commodities and uncertainties concerning the U.S. debt ceiling also weighed on the Canadian markets.

The energy sector (.SPTTEN) added 0.7% on Friday, tracking steady crude oil prices, while materials sector (.GSPTTMT) climbed 0.8% on firm precious metals prices.

Canadian Western Bank (CWB.TO) shed 4.9% after saying it no longer expected to meet its annual pre-tax, pre-provision income and was targeting lower annual growth than it had previously expected.

Anaergia Inc (ANRG.TO) shed 4.7% after the waste treatment firm said that one of its units, Rialto Bioenergy Facility, initiated restructuring proceedings.

Pot stock Tilray Brands Inc tanked 18.9% on $150 million refinancing plans, while the broader healthcare sector (.GSPTTHC) tumbled 3.5%.

Silvercorp Metals Inc (SVM.TO) shed 6.1% after the miner missed analyst expectations on quarterly earnings and sales.

Teck Resources Ltd (TECKb.TO) added 1.5% after Nippon Steel Corp (5401.T) said it was still in talks with the miner, as Japan's top steelmaker remained eager to take a stake in Teck's high-grade coking coal asset, despite Glencore's (GLEN.L) bid for the miner.

Reporting by Johann M Cherian in Bengaluru; Editing by Rashmi Aich
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.