By Sanchayaita Roy and Fergal Smith
(Technology) — Canada’s primary stock index moved up slightly as voters went to the polling stations on Monday. Investors anticipate that the markets could gain momentum once there is more certainty regarding the country’s economic strategies following the election results.
The Toronto Stock Exchange’s S&P/TSX composite index concluded trading up 88.08 points, or 0.4%, at 24,798.59, surpassing its 2024 year-end value for the first time since early April due to growing optimism about a potential easing of tensions in the ongoing global trade conflict.
The governing Liberal Party is anticipated to secure the majority of seats in an upcoming general election; however, recent surveys indicate that the primary rival Conservative Party has narrowed the lead in recent times.
No matter which party emerges victorious, Canada is poised to end up with a more economically oriented administration compared to what we’ve seen recently, as both leading contenders have outlined extensive plans aimed at stimulating economic expansion.
“The Canadian economy desires clarity,” stated Shiraz Ahmed, senior portfolio manager and founder of Sartorial Wealth at Raymond James.
Given the ongoing uncertainty, irrespective of who emerges as the winner, we will be dealing with that party’s policies, providing some financial stability from a local governance perspective.
The financial sector, which has the highest weighting on the TSX, along with technology and energy, all saw gains of 0.4%.
Despite the price of oil closing 1.5% lower at $62.05 per barrel due to ongoing demand worries, energy stocks still saw an increase.
The cost of gold went up by 1%, which was beneficial for stocks related to metal mining. As a result, the materials sector finished 0.3% higher.
The industrials fell by 0.5%, with railway stocks seeing losses, while healthcare dropped 1.4%.
(Reported by Fergal Smith in Toronto and Sanchayaita Roy in Bengaluru; Edited by Leroy Leo and Alistair Bell)