Turquoise Hill becomes the top stock even if the sector sees red

The S&P 500 (SP500) posted another week of sharp losses on Friday, falling -3.29% for the five-day session. Materials was the top loser and fell -4.99%and the Materials Select Sector SPDR ETF (XLB) -4.89%.

Gold down to 6-year low and Silver slipped to its lowest level in more than two years during the week amid a stronger dollar and rising global bond yields. December Comex Gold (XAUUSD:CUR) hit a low of $1,705.60/oz and silver in December (XAGUSD:CUR) fell to $17.61/oz after falling as much as 2.4% in earlier trade.

Aluminum prices also slipped to 16-month lows on Thursday, while other base metals fell on the London Metal Exchange. According to Reuters, benchmark aluminum futures (LMAHDS03:COM) were recently traded on the LME -2.3% to $2,305/metric ton and LME tin -6.8% to a 19-month low of $21,240/ton after falling as much as 9%; Zinc, copper, nickel and lead are also lower.

After a recent rebound, copper reversed sharply this week with Comex Front Month Copper (HG1:COM) closing on Thursday -2.9% at $3.4145/lb, the lowest settlement value since July 26th. Prices fell on worries that Europe’s energy crisis, tightening Federal Reserve monetary policy and China’s strict COVID-19 lockdowns will hurt demand for metals and global economic growth.

Take a look at this week’s top gainers in basic materials stocks ($2 billion market cap or more):

• Turquoise Hill Resources (TRQ) +8.37%; Shares rose after the company struck a deal for Rio Tinto (RIO) to acquire the remaining stake in the miner it doesn’t already own.
• Axalta Coating Systems (AXTA) +0.69%
• Posco (PKX) -0.40%
• Corteva (CTVA) -0.58%
• Applied GCP Technologies (GCP) -0.70%

The top losers of the week were:

• Scott’s Miracle Gro (SMG) -14.52%
• BHP Group (BHP) -13.76%
• United States Steel (X) -13.07%
• Companhia Siderurgica National (SID) -11.74%
• Alcoa (AA) -11.73%

Other material ETFs to keep an eye on: 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).