S&P/TSX Composite Gains Thanks to Resources

Tuesday was a great day if you own Materials and Energy stocks.

The Motley Fool

That’s right, THANKS to Resources.  For the second day in a row the S&P/TSX Composite Index (^GSPTSE) was in the green, climbing 88 points or 0.72%.

Driving the market higher was a collection of Materials and Energy names.

There were energy names, like Canadian Natural Resources (TSX:CNQ) and Cenovus Energy (TSX:CVE), both of which benefitted from a continued rise in the price of oil.  These stocks were up 2.3% and 3.0% respectively.

And diversified mining names.  Teck Resources (TSX:TCK.B) climbed 5.7% on the day, even though one of its primary products, copper, was actually down.

And even an agricultural name.  Potash (TSX:POT) was also amongst today’s top contributors with its gain of 2.2%.

Foolish Takeaway

One way or the other, resource stocks have a significant impact on the Canadian market’s performance.  However, because of their heavy-weightings in the TSX, these stocks can be harmful for those investors that think they are well-diversified with an index fund or ETF linked to the S&P/TSX Composite Index.

We have prepared a Special FREE Report that will clue you into the perils of investing in this kind of product and suggests an easy to implement alternative strategy.  It’s called “5 Stocks That Should Replace Your Canadian Index Fund” and you can receive a copy at no charge – just by clicking here.

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler is short July 2013 $40 put options on Potash Corp. and August 2013 $26 put options on Teck Resources.  He also owns shares of Potash Corp., Teck Resources, and Cenovus Energy.  The Motley Fool doesn’t own shares in any of the companies mentioned.   

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

sale discount best price
Investing

Where I’d Put $10,000 in 3 TSX Stocks Trading at Bargain Prices Today

Here are three undervalued TSX stocks Canadian investors should buy and hold over the next decade.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

April’s Best Opportunities: Where I’d Invest $5,000 in 3 Canadian Stocks

I'd be comfortable allocating money to Air Canada (TSX:AC) stock.

Read more »

Man data analyze
Investing

Canadian Tire: Buy, Sell, or Hold in 2025?

Canadian Tire (TSX:CTC.A) is a dirt-cheap retail stock that could win despite tariff disruptions in 2025.

Read more »

A glass jar resting on its side with Canadian banknotes and change inside.
Investing

How I’d Invest $9,000 in Canadian Infrastructure Stocks to Achieve Early Retirement

This ETF gives you global infrastructure exposure in a single ticker.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Thursday, April 24

The TSX Composite Index has risen 8.7% over the last 10 days as investor focus shifts from macro-driven concerns to…

Read more »

oil and gas pipeline
Energy Stocks

Why Billionaires Are Pulling Cash Out of U.S. Stocks and Buying Canadian Energy

This analyst-recommended energy stock could be one to watch in 2025.

Read more »

data analyze research
Investing

Best Canadian Stocks to Buy With $7,000 Right Now

These Canadian stocks have strong fundamentals and have the potential to deliver stellar returns in the long run.

Read more »

investment research
Dividend Stocks

Down 44% in 2025: Is TFI Stock a Buy?

Here’s why TFI stock’s sharp decline could be a golden opportunity for long-term investors.

Read more »