Canada Stocks: TSX overcomes tariff concerns as tech shares climb

Telus

13/02/2025 21:50

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      TSX ends up 0.5%, at 25,698.51
    

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      Tech sector adds 1.9%
    

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      Telus rises 3.7% on revenue beat
    

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      Sun Life falls 7.3% after profit miss
    

  
 (Updates at market close)
    By Fergal Smith
       Feb 13 (Reuters) - Canada's main stock index rose on
Thursday, led by technology and real estate shares, as investors
took in their stride the latest U.S. tariff threats and
additional evidence that U.S. inflation was picking up again. 
    The S&P/TSX composite index  .GSPTSE  ended up 135.40
points, or 0.5%, at 25,698.51, moving back in reach of the
record-high close it posted in January.
    "Equity markets are up today, climbing a wall of worry as
they deal with sticky inflation, tariff concerns, and generally
weak investor sentiment," said Brandon Michael, senior
investment analyst at ABC Funds.
    "This morning's hotter-than-expected PPI (producer price
index) initially weighed on stocks, but as the day progressed
the market rallied back, indicating exhausting selling pressure
and expectations of sticky inflation already being priced in."
     U.S. producer prices increased solidly in January,
strengthening financial market views that the Federal Reserve
would not be cutting interest rates before the second half of
the year.
    U.S. President Donald Trump unveiled a roadmap for charging
reciprocal tariffs on every country that puts duties on U.S.
imports.
    As the threat of a trade war grows, Canadian investors are
seeking protection in gold and in shares of companies producing
goods with few substitutes, such as uranium, while looking to
take advantage of a weaker loonie and expected volatility.
    "Despite the volatility, the market is now within striking
distance of new all-time highs, fueled by solid economic data
and stronger-than-expected corporate earnings," Michael said.
    Telus Corp  T.TO  shares added 3.7% after the communications
technology company's fourth-quarter revenue beat market
expectations.
    The technology sector was up 1.9%, while real estate added
1% as bond yields fell. The Canadian 10-year yield  CA10YT=RR 
was down 6.6 basis points at 3.113%.
    Shares of Sun Life Financial  SLF.TO  were a drag, falling
7.3%, after Canada's second-largest life insurer missed
fourth-quarter profits expectations.

 (Reporting by Fergal Smith in Toronto and Ragini Mathur in
Bengaluru; Editing by Vijay Kishore and Nia Williams)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))