Shining stars
The S&P materials sector index fell -3.51%and the SPDR Materials Select Sector ETF (XLB) -3.42% this week, weighed down by the worst financial crisis in 14 and a half years.
During the week, two regional US banks – Signature Bank (SBNY) and SVB Financial (BLIMS) Silicon Valley Bank: were acquired by US regulators due to liquidity problems. The banking crisis also reached Europe, with the second largest bank in Switzerland, Credit Suisse (CS) that reveal “significant deficiencies” in their reporting procedures.
Gold shone through the chaos, rising more than 2% on Friday to cap the yellow metal’s biggest weekly gain in three years as investors flocked to the safe haven.
Comex prior-month gold (XAUUSD:CUR) for March delivery closed +2.6% at $1969.80/oz, its highest level since April 2022 and jumped 5.8% on the week in its biggest gain One-week percentage increase from the week ending April 9, 2020. while March silver (XAGUSD:CUR) finished up +3.5% at $22.351/oz, rising 9.7% this week on its best week since August 2020.
This week’s top gainers among basic materials stocks (market cap $2 billion and above) were dominated by gold sector stocks:
- Kinross Gold (KGC) +11.92%
- Gold Fields (GFI) +11.27%
- Newmont (NO) +10.86%
- Osisko Gold Royalty (OR) +10.01%
- AngloGold Ashanti (AU) +8.06%
Non-precious metals stocks accounted for the biggest losses among basic materials stocks:
- Steel Dynamics (STLD) -10.23%
- National Steel Company (SID) -10.18%
- Alcohol (AA) -9.69%
- Mosaic (MOS) -9.47%
- Alpha Metallurgical Resources (AMR) -9.43%
Other material ETFs to consider: iShares Global Timber & Forestry ETF (WOOD), Materials Select Sector SPDR ETF, Vanguard Materials ETF (VAW), iShares Global Materials ETF (MXI), SPDR S&P Metals and Mining ETF (XME), VanEck Vectors Gold Miners ETF (GDX), iShares MSCI Global Gold Miners ETF (RING), Global X Copper Miners ETF (COPX).
