CANADA STOCKS-TSX closes just shy of record as mining stocks ride gold wave

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* TSX is up 120.05 points or 0.56% at 21,581.98 . ends at

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* Materials index rises 2.6% as gold hits five-month high

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* Gains in cannabis stocks as analysts raise Aurora target price (update to close)

Nov 11 (Businesshala) – Canada’s main stock index closed this week at a record high on Thursday, led by mining stocks, boosted by strong gold prices as investors sought refuge from rising inflation. The Toronto Stock Exchange’s S&P/TSX Composite Index closed up 120.05 points, or 0.56%, at 21,581.98

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The benchmark touched an all-time high of 21,594.52 on Tuesday.

The Materials Index, which includes precious and base metal miners and fertilizer companies, added 2.6%.

Spot gold climbed 0.7% to its highest level since June as investors sought cover after US data on Wednesday showed inflation hitting a 31-year high in October.

“The gold/inflation linkage is a reasonable conclusion to draw,” said Brian Madden, portfolio manager at Goodreads Investment Counsel.

“Bond markets are still closed today for Memorial Day, so investors who would otherwise have been selling bonds in response to yesterday’s inflation print delay may instead buy inflation beneficiary shares as a hedge,” he said. said.

The Toronto benchmark index returned gains after taking relief in the previous session on inflation data, raising hopes that central banks may raise interest rates more quickly to quell a spike in prices.

The healthcare stock index rose 2.7% after Aurora Cannabis Inc. jumped 7.4% after analysts at CIBC World Markets and Cowen raised their target price for the marijuana maker. Rivals Cronos Group, Canopy Growth Corp. and Tilray Inc. all rose between 3.8% and 4.6%.

The CAE Inc index was the biggest loser, falling 10.1% as investors took stock of disappointing earnings from the aviation training specialist.

Elementor Fleet Management and Canadian Tire Corp also fell as analysts cut their target price for the former after reporting third-quarter earnings on Wednesday, and the latter missed profit and revenue expectations. (Reporting by Nicola Saminether in Toronto; Editing by Jonathan Otis)

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