TSX starts 2025 on upbeat note as resource shares climb
Source: Live Mint
TSX ends up 0.7% at 24,898.03
Materials group jumps 3.3%
Energy gains 1.6% with oil up nearly 2%
(Updates to market close)
Jan 2 (Reuters) – Canada’s main stock index rose on Thursday on the first trading day of 2025 as a jump in commodity prices boosted energy and metal mining shares, with the index clawing back some of its December decline.
The S&P/TSX composite index ended up 170.09 points, or 0.7%, at 24,898.03, its highest closing level since Dec. 17.
For 2024, the TSX gained nearly 18%, its biggest yearly advance since 2021. But it was down 3.6% in December as a hawkish shift by the Federal Reserve contributed to an increase in long-term U.S. borrowing costs.
“Much like a surprise holiday guest, December’s market shift was uninvited and unplanned,” Greg Taylor, chief investment officer of Purpose Investments, said in a note.
“We may be entering a new normal with more moderate returns and higher volatility. Tactical strategies and hedging will be key to navigating this period.”
Domestic data was upbeat. It showed that manufacturing activity increased at the fastest pace in nearly two years in December as inventory accumulation by U.S. clients in anticipation of trade tariffs provided a measure of support for export sales.
Energy was up 1.6% as the price of oil settled nearly 2% higher at $73.13 a barrel after a pledge by Chinese President Xi Jinping to promote economic growth.
The price of gold also rose, which boosted metal mining shares. The materials group added 3.3%.
Nine of 10 major sectors gained ground. The exception was heavily weighted financials, which ended 0.3% lower. (Reporting by Fergal Smith in Toronto and Ragini Mathur in Bengaluru; Editing by Sahal Muhammed and Richard Chang)
