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.
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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.
