Canada Stocks: TSX rises for fifth straight day as investors look past US 'political noise'

Constellation Software

02/10/2025 21:58

TSX ends up 0.2%, at 30,160.59

Eclipses Wednesday's record closing high

Technology rises 1%

Consumer discretionary adds 1.7%

Updates at market close

By Fergal Smith

Oct 2 (Reuters) - Canada's main stock index rose to another record high on Thursday, led by gains for technology and consumer discretionary shares, as investors looked past the uncertainty around a U.S. government shutdown.

Toronto's S&P/TSX composite index .GSPTSE ended up 52.92 points, or 0.2%, at 30,160.59, notching its fifth straight day of gains and eclipsing Wednesday's record closing high.

"What we're seeing in the market right now is really a playing out between the fundamentals and the political noise," said Philip Petursson, chief investment strategist at IG Wealth Management.

"Some investors have been making the mistake, thinking that what's going on in the United States with the shutdown and everything else would have a bigger impact on the market but the reality is what matters are profits."

The U.S. was in the second day of a government shutdown which could disrupt air travel, threaten food aid for millions of Americans, and weigh on exports and mortgage applications if prolonged. However, past shutdowns have not had a lasting impact on the broader U.S. economy.

"This is a profit-driven market. That's why we continue to hit new highs on the TSX, on the S&P 500, on other indexes around the world," Petursson said. "We believe that this is a culmination of a renewed economic cycle and a renewed market cycle."

The technology sector .SPTTTK rose 1%, with Constellation Software Inc CSU.TO ending 1.8% higher. Consumer discretionary advanced 1.7%, helped by a gain of 2.3% for autoparts supplier Magna International Inc MG.TO.

Energy .SPTTEN was a drag, falling 0.7%, as the price of oil CLc1 settled 2.1% lower at $60.48 a barrel on oversupply concerns ahead of a meeting of the OPEC+ group over the weekend.

The materials group .GSPTTMT, which includes fertilizer companies and metal mining shares, was down 0.4%.

 (Reporting by Fergal Smith in Toronto and Sanchayaita Roy in Bengaluru; Editing by Leroy Leo and Alistair Bell)

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