The Toronto Stock Exchange’s S&P/TSX composite index closed up 158.35 points, or 0.6%, at 24,917.50 on Monday. Despite this rally, the index posted a 1.9% loss for March, marking its second consecutive month of declines.
Energy and Financial Sectors Lead the Gains
The market was buoyed by gains in the energy and financial sectors, which are heavily weighted in the TSX index. Both sectors helped the market recover from an earlier risk-averse slump.
Sid Mokhtari, chief market technician at CIBC Capital Markets, noted that both the U.S. and Canadian markets appeared to be “oversold,” with traders possibly taking on more risk ahead of President Donald Trump’s upcoming tariff announcements. On Sunday, Trump revealed that the new tariffs, set to be announced Wednesday, would apply to all nations, not just a select few with large trade imbalances.
Financials and Energy Boost the Index
The financial sector rose 0.8%, helped by seasonal factors, while the energy sector gained 1.2%. Energy stocks were supported by a surge in oil prices, which settled 3.1% higher at $71.48 per barrel. The rise in oil prices was driven by concerns that potential tariffs on Russia and threats to attack Iran could lead to supply declines.
Other Sector Performance
The materials sector, including fertilizer companies and metal mining stocks, climbed 0.5%, boosted by a record high in gold prices. Industrials rose 1.1%, and consumer staples ended 1.9% higher. However, the technology sector was the only one of the 10 major sectors to finish in the red, down 0.2%.
Bond Yields and Financial Outlook
The Canadian 10-year bond yield eased by 5.3 basis points, closing at 2.964%. The decrease in bond yields supported the positive movement in the financials sector. Overall, the gains in energy and financials helped the TSX recover some of its earlier monthly losses.
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