TSX inches up as lingering geopolitical worries lift oil, precious metals

Kitco Media
By Reuters
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Reuters
TSX inches up as lingering geopolitical worries lift oil, precious metals teaser image

Jan 23 (Reuters) - Canada's main stock index ‌edged up on Friday, led by energy and mining shares, as renewed fears of potential U.S. military action against Iran boosted oil rates and broader geopolitical uncertainty kept precious metal prices elevated.

The S&P/TSX Composite Index (.GSPTSE), was up 0.2% ‌at 32,068.32 points as of 10:36 a.m. ET, on track ​to end a volatile week of geopolitical flip-flops with marginal gains.

Oil prices advanced on Friday after U.S. President Donald Trump said the U.S. had an "armada" ‍heading toward major crude producer Iran, renewing fears of supply disruptions.

The TSX's energy index (.SPTTEN), led advances, rising 1.7% and set for a second straight weekly gain.

The broader materials ⁠index (.GSPTTMT), which houses precious-metal miners, climbed 1.6% as silver hovered near $100 and ‍gold steadied after hitting a record high earlier in the day.

The gold sector (.SPTTGD), rose ‌1.1% ‌and led weekly gains, up 7.7% since Monday compared with a 0.1% advance by the broader TSX.

Partially offsetting the day's gains, the heavyweight financials sector (.SPTTFS), fell 0.56% and healthcare (.GSPTTHC), shed 2.3%, with drugmaker Bausch Health (BHC.TO), plummeting 10% after ⁠its brain dysfunction ⁠treatment failed late-stage trials .

Investors ​also await major tech company earnings due in the U.S. next week and interest rate decisions from the Federal Reserve and the Bank of Canada.

"There'll be a ‍lot of attention back on Mag 7 stocks in U.S.," said Michael Dehal, senior portfolio manager at Dehal Investment Partners at Raymond James.

"We're looking for a bounce in Canadian ​tech. Hopefully, U.S. tech could help out ‍our tech companies."

Technology (.SPTTTK), was the worst-performing sector on the TSX this week, down 7.2% despite ​a 0.5% advance on Friday.

Reporting by Utkarsh Tushar Hathi; Editing by Jonathan Ananda

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