CANADA STOCKS-Toronto market gains as investors rotate into value stocks
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TSX ends up 0.2% at 21,769.22
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Materials group adds 0.8%
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Silvercrest Metals jumps 10.2%
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Technology loses 0.5%
(Updates at market close)
By Fergal Smith
March 11 (Reuters) - Canada's main stock index rose on Monday, benefiting from a broadening of the recent rally to include stocks considered cheap compared to their fundamental valuations, although gains were restrained ahead of a key U.S. inflation report.
The Toronto Stock Exchange's S&P/TSX composite index ended up 31.69 points, or 0.2%, at 21,769.22 but stopping short of the near two-year high it notched on Thursday at 21,794.56.
"That broader uptrade persists but today we are seeing some indecision ahead of the U.S. CPI report," said Angelo Kourkafas, senior investment strategist at Edward Jones.
The U.S. consumer price index report for February, due on Tuesday, could help guide expectations for the start of Federal Reserve interest rate cuts.
"One of the most important developments in the last couple of days has been this rotation across different styles and sectors ... moving money out of tech into areas like value style investments," Kourkafas said.
The TSX has a heavy concentration of value stocks, including companies in the financial, industrial and material sectors, that tend to trade at a cheaper price than their expected cash flows would suggest.
The materials index, which includes precious and base metals miners and fertilizer companies, rose 0.8% as gold continued its record-setting rally. It was led by a gain of 10.2% for Silvercrest Metals Inc after the non-gold precious metals miner announced its fourth-quarter results.
Financials also gained ground, rising 0.3%, and energy was up 0.2% despite the price of oil settling 0.1% lower at $77.93 a barrel.
Technology was a drag, falling 0.5%. Still, the sector is up 6% since the start of the year. (Reporting by Fergal Smith in Toronto and Purvi Agarwal in Bengaluru; Editing by Vijay Kishore and Marguerita Choy)
