Canada Stocks: TSX hits another record high as investors cheer market breadth, weaker currency

Celestica

01/10/2025 21:28

TSX ends up 0.3% at 30,107.67

Surpasses Tuesday's record closing high

Shares of Lithium Americas jump 23.4%

Materials group adds 0.9% as gold hits record high

Updates at market close

By Fergal Smith

TORONTO, Oct 1 (Reuters) - Canada's main stock index rose to another record high on Wednesday as higher gold prices boosted metal mining shares and the Canadian dollar moved closer to a recent four-month low.

The S&P/TSX composite index .GSPTSE ended up 84.86 points, or 0.3%, at 30,107.67, surpassing Tuesday's record closing high.

"We are not surprised to see members of the TSX index continue to perform well," said Sid Mokhtari, chief market technician for CIBC Capital Markets.

"Our breadth is good, we've seen our dollar being on the weaker side, which is inversely correlated to the performance of the nation's benchmark index, and we're resource-oriented."

Canada is a major producer of commodities such as oil and gold that are priced in U.S. dollars.

The Canadian dollar weakened against its U.S. counterpart as a steeper slowdown in Canada's manufacturing sector supported bets for additional interest rate cuts by the Bank of Canada.

The materials sector .GSPTTMT, which includes metal mining shares, gained 0.9% as gold XAU= extended its record-setting run. A U.S. government shutdown added to gold's safe-haven appeal, together with softer U.S. jobs data that reinforced expectations the Federal Reserve will cut interest rates further this month.

Technology .SPTTTK was up 0.9%, with shares of electronic equipment company Celestica Inc CLS.TO gaining 2.5%.

The U.S. Department of Energy has taken a 5% stake in Vancouver-based Lithium Americas  and a separate 5% stake in the company's Thacker Pass joint venture with General Motors GM.N that is set to be the largest lithium source in the Western Hemisphere. Shares of Lithium Americas jumped 23.4%.

Three of the TSX's 10 main sectors ended lower, including energy. It lost 0.2% as the price of oil CLc1 settled nearly 1% lower at $61.78 a barrel.

 (Reporting by Fergal Smith in Toronto and Sanchayaita Roy in Bengaluru; Editing by Shailesh Kuber and Nia Wlliams)

 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))