CANADA STOCKS-TSX adds to weekly winning streak as gold mining shares jump

By Fergal Smith

Sept 19 (Reuters) - Canada's main stock index rose to another record high on Friday as gold mining shares climbed and investors cheered the Bank of Canada's recent move to support the domestic economy.

The S&P/TSX composite index .GSPTSE ended up 314.83 points, or 1.1%, at 29,768.36, surpassing Thursday's record closing high.

For the week, the index was up 1.7%, its seventh straight weekly gain. That is the longest such streak since February 2024.

"The Bank of Canada's recent rate cut was a shot in the arm that the market was looking for," said Victor Kuntzevitsky, a portfolio manager at Stonehaven, Wellington-Altus Private Counsel.

"It's a clear signal that the bank is confident in the inflation trajectory and is now pivoting to support economic expansion. And in our view, this has fundamentally repriced risk for investors and provided a clear tailwind for Canadian equities."

Canadian retail sales fell 0.8% in July but an advanced indicator pointed to sales rebounding by 1% in August. On Wednesday, the BoC reduced its key policy rate to a three-year low of 2.5% and said it was prepared to cut further if risks to the economy rose.

The materials sector .GSPTTMT, which includes fertilizer companies and metal mining shares, jumped 3.9%, as the price of gold XAU= moved closer to another record high.

Gold and copper producer Barrick Mining Corporation ABX.TO was the top-performing stock, with its shares climbing 9.7%.

"The surge in gold stocks reflects a disciplined focus on cost management among Canadian producers," Kuntzevitsky said. "We really feel that investors are rewarding companies with strong operational efficiencies that can turn higher gold prices directly into shareholder value."

The consumer staples sector .GSPTTCS gained 1.3% and heavily weighted financials .SPTTFS were up 0.9%.

Just two of 10 major sectors ended lower, including energy .SPTTEN. Energy lost 2.2% as the price of oil CLc1 settled 1.4% lower at $62.68 a barrel on worries about large supplies and declining demand.