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* TSX is up 181.35 points or 0.9% at 20,618.47 . ends at
* Posts its highest closing level since 15 September
* Both the Materials and Technology groups grow 2.2%
* Gold rose nearly 2%; copper up 3.8%
TORONTO, Oct 13 (Businesshala) – Canada’s main stock index climbed to a four-week high as hot US inflation data added to the allure of metal mining stocks, while technology conglomerate also gained ground.
The Toronto Stock Exchange’s S&P/TSX composite index gained 181.35 points, or 0.9%, to close at 20,618.47, its highest closing level since Sept. 15.
“It’s mostly to do with high inflation numbers coming from the US,” said Alan Smalls, senior investment advisor at IA Private Wealth’s Allen Smalls Financial Group.
“It has fueled a handsome bidding drive in gold, material… that’s what’s driving it.”
US consumer prices rose solidly in September as Americans paid more for food, rent and other goods, putting pressure on the Biden administration to urgently resolve strained supply chains that are hindering economic growth. Huh.
Gold is seen as a hedge against inflation. It rose nearly 2%, also helped by a pullback in US Treasury yields, while copper futures advanced 3.8%.
Both the materials group, which includes precious and base metal miners and fertilizer companies, and the technology sector grew 2.2%, while the industrial sector grew 1.3%.
Energy gave back some recent gains, falling 0.6%, as the rally in crude lost some momentum. US crude futures fell 0.3% to end at $80.44 a barrel.
The biggest percentage gainers on the TSX were Eldorado Gold Corp., which rose 9.3%, and Blackberry Ltd., which was up 4.7%. (Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Cynthia Osterman)