By Johann M Cherian
(Reuters) - Canada's benchmark stock index gained for a third straight session on Friday, led by materials stocks as commodity prices rose, while hopes of a pause in monetary tightening by the Bank of Canada also fueled investor optimism.
At 10:12 a.m. ET (1512 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 99.49 points, or 0.49%, at 20,436.7.
The materials sector climbed 0.6%, tracking strength in copper and gold prices as strong economic data in top consumer China raised demand hopes. [MET/L] [GOL/]
"China was closed for months and just improving economic data gives buyers of commodity stocks confidence that those prices can hold, and as we know it is a good chunk of the TSX index," said Barry Schwartz, portfolio manager at Baskin Financial Services.
The Bank of Canada is expected to be the first major central bank to "pause" monetary tightening, holding rates at the current level of 4.5% till the year-end, and start cutting rates in January 2024.
The financials sector, which constitutes nearly 30% of the TSX, rose 0.4%.
Following a volatile February, the TSX tracked weekly gains of 1.2%, its best performance in seven weeks. The index is on track to snap three straight weekly declines as strong economic data from China allayed fears of a global economic slowdown.
Among stocks, Suncor Energy Inc added 0.8% after Equinor said it would acquire the British oil and gas business of the energy firm for $850 million.
Sleep Country Canada Holdings Inc jumped 6.4% after the company's fourth-quarter sales and earnings beat estimates. The consumer discretionary sector housing the retailer added 0.7%.
Meanwhile, data showed that the value of building permits fell by 4.0% in January from the previous month as the residential sector saw lower intentions for single-family and multi-family components.