The materials sector index of the S&P closed the week with a gain of 0.03%. However, some investors took profits as the prices touched a nine-month intraday high, and the index fell further after the release of much stronger than expected U.S. non-farm payrolls data that raised fears of interest rate hikes by the Federal Reserve. March silver XAGUSD lost 4.3% in seven sessions and was trading at $22.59/oz.
Copper prices also witnessed a decline, falling the most in nearly seven weeks on Wednesday. Despite supply disruptions and bets on the end of China’s COVID restrictions reigniting growth, concerns regarding demand remained. Front-month Comex copper HG1! for February delivery declined by 2.7% to $4.111/lb, marking its fifth loss in the past seven sessions, and the biggest drop since December 15. Additionally, three-month copper on the London Metal Exchange lost 2.4% during the week.
Top Gainers Among Basic Material Stocks
The following basic material stocks ($2B market cap or more) topped the gainers’ list this week:
- Scotts Miracle-Gro SMG: Shares soared by 23.7% after surpassing expectations for FQ1 adjusted earnings and revenues.
- Quaker Chemical KWR: The stock surged by 10.16%.
- Worthington Industries WOR: The stock gained 12.02%.
- Constellium CSTM: The stock rose by 10.08%.
- Lithium Americas LAC: The stock increased by 9.80%.
Commodities graph
Top Losers Among Basic Material Stocks
The following basic material stocks experienced the biggest losses this week:
- Air Products & Chemicals APD: The shares plummeted to a nearly three-month low after reporting disappointing earnings and Q2 EPS guidance, losing 9.10%.
- Gold Fields GFI: The stock dropped by 7.92%.
- Agnico Eagle Mines AEM: The stock fell by 7.45%.
- Kinross Gold KGC: The stock declined by 7.40%.
- Vale VALE: The stock lost 7.13%.
Materials ETFs to Watch
Investors interested in the materials sector should watch the following ETFs:
- 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
In conclusion, the materials sector witnessed mixed results this week, with some stocks posting gains while others suffered losses. The decline in copper prices was attributed to demand concerns outweighing supply disruptions and bets on the end of China’s COVID restrictions reigniting growth. Investors interested in this sector should keep an eye on the above-mentioned ETFs.
