sergeyzavalnyuk
The materials sector had a dismal week, with the S&P Materials Index falling -3.49% and the Materials Select Sector SPDR ETF (XLB) -3.33%. The broader market grappled with stronger than expected inflation data in the form of the PCE price index report January and the market’s concern about the Federal Reserve rate hikes.
Gold prices rose on Friday to post their first weekly gain in five, as a pullback in US dollar and Treasury yields eased some concerns about further rate hikes from the Federal Reserve.
Comex Prior Month Gold (XAUUSD:CUR) for March delivery ended the week up 2.1% at $1847.70/oz, its highest liquidation value since mid-February, while Comex Silver March (XAGUSD:CUR) closed with a gain of 1.3%. .
Chinese iron ore futures (SCO:COM) hit an eight-month high on Friday as Chinese mills ramped up production while iron ore inventories are relatively low, according to Reuters.
Copper prices on Friday (HG1:COM) also looked set for their best weekly gain since early January on optimistic demand, as data showed Chinese factory activity increased in February at the fastest pace since 2012.
Take a look at this week’s top gainers among basic materials stocks (market cap $2 billion or more):
- Technoglass (TGLS) +21.77%; Shares rose on Thursday after the glassmaker shattered fourth-quarter earnings expectations.
- Alcoa (AA) +18.48%; Shares rose on a report that private equity firm Apollo Global (APO) is in talks to buy the aerospace parts maker.
- Guerrero found coal (HCC) +16.59%
- Cemex (CX) +15.71%
- Buenaventura Mining Company (BVN) +15.50%; The firm released its fourth-quarter numbers in early March.
Here are the biggest losers among basic material stocks:
- Longevity (NGVT) -8.42%; Ingevity missed expectations for fourth quarter results.
- Enviva (EVA) -8.14%; The company posted lower-than-estimated revenue for the fourth quarter.
- Simec Group (SIM) -5.26%
- Boise Cascade (BCC) -2.76%
- FMC (FMC) -1.53%
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).
