TSX Rises As Barrick Boosts Miners After Profit Beat
Canada's main stock index rose on Monday as miner Barrick Gold Corp led gains among miners after it reported a quarterly profit that beat analysts' estimates.
The lack of any significant negative catalysts on Monday also helped lift sentiment, according to analysts.
"Now when there's no news, it seems the market is gradually moving higher again," said Allan Small, senior investment adviser at Allan Small Financial Group.
Barrick posted higher copper output for the quarter. Meanwhile, inflation drove the miner's cost of production up.
"I think everyone's getting hit with inflation. Overall a company like Barrick cut costs in other areas, so I think it can withstand inflationary pressures," Small said.
The mining index rose 1.3% and was among the top gainers in early trading, with higher copper and gold prices also boosting the sector.
At 10:02 a.m. ET (1402 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 132.64 points, or 0.68%, at 19,752.77.
Cenovus Energy Inc rose 1.6% after the company said it will buy the remaining 50% stake it does not already own in Ohio-based BP-Husky Toledo Refinery for $300 million from British energy firm BP PLC.
The energy sector climbed 0.2% as U.S. crude prices were up 0.1% a barrel, while Brent crude added 0.3%. [O/R]
Nutrien Ltd edged 0.5% higher after the world's largest fertilizer producer named Ken Seitz as chief executive.
The TSX ended Friday with its third straight day of modest gains, but was down 0.4% for the week.
Data on Friday showed Canada reported 30,600 positions were shed, while the unemployment rate stayed at a record low of 4.9%, but a rise in energy shares amid higher oil prices helped the stock index close higher.
Investors across the globe were also awaiting the release of key U.S. inflation data later this week.
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