Toronto shares set for weekly gains as commodity-linked stocks surge

Oct 13 (Reuters) – Canada’s main stock index jumped on Friday, set for its first weekly gain in four, as energy and materials stocks soared on higher commodity prices, while upbeat results from big U.S. banks pushed the financials sector higher.

At 10:07 a.m. ET (1407 GMT), the Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) was up 124.07 points, or 0.64%, at 19,624.31.

The materials sector (.GSPTTMT), which includes miners and fertilizer companies, jumped 1.9% to its highest in over two weeks, as gold prices soared after U.S. bond yields lowered and safe-haven demand rose amid conflict in the Middle East.

The energy sector (.SPTTEN) added 1.2% as oil prices per barrel rose more than $3 after the U.S. tightened its sanctions against Russian crude exports.

“There’s definitely a flight to safety when we look at oil and gold over what may happen next in the Middle East,” said Mike Archibald, portfolio manager at AGF Investments.

The financials sector (.SPTTFS) gained 0.5% following upbeat results from major Wall Street banks.

JPMorgan Chase (JPM.N) and Wells Fargo (WFC.N) reported higher profits in the third quarter as the U.S. lenders benefited from higher interest on loans, while Citigroup (C.N) also topped estimates on surging investment banking fees.

“Financials are an under-owned sector at the moment, and people are waiting to see when the increase in rate starts to take effect on some of their loan books,” said Archibald.

Earlier in the day, Federal Reserve’s Patrick Harker said he believes the central bank is likely done with rate hikes as price pressures ease, further boosting investor confidence.

The real estate sector (.GSPTTRE) slipped 0.5% as data showed Canadian home sales fell 1.9% in September from August, the third consecutive month of declines.

Our Standards: The Thomson Reuters Trust Principles.