TSX snaps weekly losing streak as energy shares climb

·2 min read
FILE PHOTO: A sign board displaying Toronto Stock Exchange stock information is seen in Toronto

By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rose on Friday, adding to this week's rally, as technology shares found some relief and higher oil prices boosted the attractiveness of the energy sector.

The Toronto Stock Exchange's S&P/TSX composite index ended up 64.60 points, or 0.3%, at 21,357.56.

For the week, the index was up 1.3%, snapping a two-week losing streak.

"It seems like the volatility in 2022 is continuing both to the downside and the upside," said Mike Archibald, a portfolio manager at AGF Investments.

Some parts of the market, like technology and industrials, are "extremely oversold," Archibald said. "I think that there is likely to be a bounce in some of that stuff."

The technology group rose 0.6% after posting on Thursday its lowest closing level since May 2021. It included a 3.7% gain for Shopify Inc, helped by a spurt in the final hour of trading.

Energy shares climbed 2.9% as oil added to recent gains. U.S. crude oil futures settled 2.1% higher at $83.82 a barrel on supply constraints and worries of a Russian attack on neighboring Ukraine.

The Toronto market gained 22% in 2021, its best yearly performance since 2009, supported by massive stimulus, vaccine rollouts and hopes of a global economic recovery.

However, the index recently lost steam as investors grew concerned about the prospect of a more hawkish U.S. Federal Reserve this year.

Financials, the most heavily weighted sector on the TSX, ended 0.3% higher on Friday, while the materials group, which includes precious and base metals miners and fertilizer companies, lost 0.5%.

(Reporting by Fergal Smith in Toronto; Additional reporting by Amal S in Bengaluru; Editing by Matthew Lewis)

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