Canada Stocks: Resource shares help lift TSX to sixth day of gains

Avalon Advanced Materials

04/07/2023 21:33

* 
      TSX ends up 0.25% at 20,204.87 
    

        * 
      Energy rises 0.9% as oil prices climb
    

        * 
      Materials sector gains 0.9%
    

        * 
      Canada Manufacturing PMI dips to 48.8 in June
    

  
 (Updated at market close)
    By Shashwat Chauhan and Fergal Smith
       July 4 (Reuters) - Canada's main stock index rose on
Tuesday to its highest closing level in one and a half months as
investors weighed China's move to curb exports of chipmaking
materials and despite data that showed a deeper contraction in
the domestic factory sector.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 49.58 points, or 0.25%, at 20,204.87, its
highest closing level since May 19. It was the sixth straight
day of gains for the index, its longest winning streak since
April.
    The volume of trading was lighter than usual with Wall
Street closed for the July Fourth public holiday.
    The S&P Global Canada Manufacturing Purchasing Managers'
Index (PMI) dipped to a seasonally adjusted 48.8 in June from
49.0 in May as an uncertain economic outlook weighed on both
domestic and foreign demand.
    The data could help guide expectations for additional
tightening by the Bank of Canada at an interest rate decision
next week.
    "One would hope that the BoC is seeing a slowdown on the
manufacturing side of things, even though on the services side,
they're not," said Allan Small, senior investment adviser of the
Allan Small Financial Group with iA Private Wealth.
    "That is the problem for the BoC ... how much do they
increase rates to bring down that stubborn core and services
inflation."
    The energy sector gained 0.9% as oil climbed 1.7% to $71 a
barrel after supply cuts by top exporters Saudi Arabia and
Russia.
    The materials sector, which includes precious and base
metals miners and fertilizer companies, also added 0.9% as gold
prices rose and after China decided to restrict exports of two
metals widely used in semiconductors and electric vehicles.
    Shares of Neo Performance Materials Inc  NEO.TO , a company
that manufactures advanced industrial metals, gained 5.7% and
Avalon Advanced Materials Inc  AVL.TO  shares jumped 24%.

 (Reporting by Fergal Smith in Toronto and Shashwat Chauhan in
Bengaluru
Editing by Alistair Bell and Josie Kao)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446
))