TORONTO, Feb 10 – Canada’s main stock index, the S&P/TSX composite, climbed on Monday, buoyed by strong performances from technology and resource sectors. Investors remain optimistic about the market’s outlook despite concerns over potential U.S. tariffs on steel and aluminum.
The TSX ended the day up 215.95 points, or 0.85%, closing at 25,658.86. This brings the index closer to its recent record high of 25,808.25, set on January 30.
“We’re still reasonably bullish on the TSX,” said Jay Bala, co-founder and senior portfolio manager at AIP Asset Management. “We’re cautiously optimistic about a positive year, predicting 27,000 by year-end. However, there will be a lot of volatility between now and then.”
U.S. Tariffs Threaten Canadian Trade
On Sunday, U.S. President Donald Trump announced plans to impose an additional 25% tariff on all steel and aluminum imports, stacking on top of existing duties. Canada, a key supplier of these metals, could be significantly affected by the move.
In response to these potential challenges, Canadian business and labor leaders gathered in Toronto on Friday to explore strategies for diversifying trade and strengthening the national economy.
“I think it makes a lot of sense to focus more on Canada and how we can build a better country, rather than fighting with others,” Bala added.
Sector Performances Drive the Market
The energy sector rose 2.1%, bolstered by a 1.9% increase in oil prices, which closed at $72.32 per barrel. The materials group, which includes metal mining stocks, gained 2% as gold prices reached a new record high.
Technology stocks also saw a solid boost, rising 1.7%.
Toronto-Dominion Bank (TD.TO) announced it would sell its 10.1% stake in U.S. financial services firm Charles Schwab (SCHW.N). This news led to a 3.9% increase in TD’s share price. Meanwhile, MDA Space (MDA.TO) experienced a remarkable surge, with its stock jumping nearly 13%.
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