Toronto market ekes out weekly gain as energy shares jump
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index rose on Friday and posted a small weekly gain as higher oil prices bolstered energy shares, but worries that the economy was headed for a recession next year helped limit the index's advance.
The Toronto Stock Exchange's S&P/TSX composite index ended up 156.99 points, or 0.8%, at 19,506.65. For the week, it gained 0.3%, after two straight weeks of declines.
Wall Street's major indexes also rose as investors assessed inflation data against rate hike and recession fears.
"Economic slowdown is the major trend that is moving developed world markets in the last few months," said Brian Madden, chief investment officer at First Avenue Investment Counsel in Toronto. "In front of us is the looming risk of an economic slowdown and a likely recession in Canada and the U.S."
The Canadian economy grew by 0.1% in October and is expected to expand at the same pace in November, a sign that the full impact of seven consecutive interest rates hikes this year by the Bank of Canada has yet to play out.
The Toronto market's energy sector rose 4%, as oil prices settled 2.7% higher at $79.56 a barrel. Supportive of oil, Moscow said it could cut crude output in response to the G7 price cap on Russian exports.
The materials group, which includes precious and base metals miners and fertilizer companies, also gained ground, adding 0.8%.
Commodity-fueled gains have helped the TSX outperform the S&P 500 so far this year, losing 8.1% versus a 19.3% drop in the U.S. benchmark.
Among the standouts on Friday was Superior Plus Corp.
Its shares rose 8.6%, adding to the previous day's gains, as brokerages raised their price targets on the stock following the company's deal to buy mobile low-carbon fuels provider Certarus Ltd.
(Reporting by Fergal Smith; Additional reporting by Shashwat Chauhan in Bengaluru; Editing by Alistair Bell)
