COM - Materials Sector Weekly Round-up: Tecnoglass tops list on strong Q4 show; Ingevity drops to bottom on earnings miss

2023-03-04 12:25:30 ET

The materials sector had a dismal week, with the S&P Materials index down -3.49%, and the Materials Select Sector SPDR ETF ( XLB ) -3.33%. The wider market grappled with stronger-than-expected inflation data in the form of the PCE price index report for January and market concerns over the Federal Reserve's rate hikes.

Gold prices rallied Friday to post their first weekly increase in five, as a pullback in the U.S. dollar and Treasury yields eased some concerns about further Federal Reserve rate hikes.

Front-month Comex gold ( XAUUSD:CUR ) for March delivery capped the week with a 2.1% gain to $1,847.70/oz, its highest settlement value since mid-February, while March Comex silver ( XAGUSD:CUR ) closed with a 1.3% gain.

Chinese iron ore futures ( SCO:COM ) sprinted to an eight-month high Friday, as China's mills ramp up production while iron ore inventories are relatively low, according to Reuters.

Copper prices on Friday ( HG1:COM ) also appeared headed for their best weekly gain since early January on demand optimism 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 material stocks ($2B market cap or more):

• Tecnoglass ( TGLS ) +21.77% ; Shares surged on Thursday after the glassmaker smashed Q4 earnings expectations.
• Alcoa ( AA ) +18.48%; The stock jumped on a report that private equity firm Apollo Global ( APO ) is in discussions to purchase the aerospace-parts maker.
• Warrior Met Coal ( HCC ) +16.59%
• Cemex ( CX ) +15.71%
• Compania de Minas Buenaventura ( BVN ) +15.50% ; The firm posted its Q4 numbers at the start of March.

Here are the top losers among basic material stocks:

• Ingevity ( NGVT ) -8.42% ; Ingevity missed both top and bottom line expectations for its Q4 results.
• Enviva ( EVA ) -8.14% ; The company posted a lower-than-estimated revenue for Q4.
• Grupo Simec ( SIM ) -5.26%
• Boise Cascade ( BCC ) -2.76%
• FMC ( FMC ) -1.53%

Other materials ETFs to watch: 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 ).

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