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Company News

CANADA STOCKS-Toronto market extends recovery as materials shares climb

(Adds investor quote and details throughout, updates prices)

* TSX ends up 20.81 points, or 0.1%, at 20,437.12

* The materials group adds 1.5%

* Uranium producer Cameco Corp jumps 14.7%

TORONTO, Oct 12 (Reuters) - Canada’s main stock index edged higher on Tuesday as the materials group rallied and oil prices as well as bond yields climbed, with the index adding to last week’s gain.

The Toronto Stock Exchange’s S&P/TSX composite index ended up 20.81 points, or 0.1%, at 20,437.12. Last week the index rose 1.3%, snapping a four-week losing steak.

It has gained around 17.2% so far this year.

“The two main forces driving it” are oil prices and bond yields, said Robert McWhirter, a portfolio manager at Selective Asset Management Inc.

The price of oil settled 0.2% higher at $80.64 a barrel after touching on Monday a seven-year high at $82.18.

Higher oil prices have helped underpin energy stocks in recent weeks, while banks could earn higher margins on their loans after long-term interest rates climbed.

Canada’s 5-year yield was up 3.7 basis points at 1.251%, after touching its highest level since February 2020 at 1.335%.

The energy sector climbed to its highest intraday level since May 2019 before closing 0.1% lower. Financials also gave back some recent gains, dipping 0.3%, but the materials group, which includes precious and base metals miners and fertilizer companies, added 1.5%.

Shares of uranium producer Cameco Corp jumped 14.7% after Scotiabank raised its target price on the stock.

Denison Mines Corp climbed 19.4%, while Lithium Americas Corp ended 17.7% higher. (Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Jonathan Oatis)

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