TSX ends up 0.5% at 34,127.33
Eclipse Tuesday’s record closing high
National Bank shares up 6.6% after earnings beat
Technology sector adds 1.6%
(Updates at market close)
Feb 25 (Reuters) – Canada’s main stock index rose to another record high on Wednesday as concerns about artificial intelligence disruption eased and solid bank earnings boosted financial shares.
The S&P/TSX Composite Index ended up 156.95 points, or 0.5%, at 34,127.33, moving past the record closing high it posted on Tuesday.
“It’s all systems go,” said Greg Taylor, chief investment officer at PenderFund Capital Management. “The bank earnings – there was some hesitation coming into them but they’ve actually been better than feared, and we’re seeing some big moves today.”
National Bank of Canada shares rose 6.6% and shares of Bank of Montreal were up 3.8% as both banks beat analysts’ estimates for first-quarter profit. Heavily weighted financials added 1.7%.
Shares of US software companies extended gains for a second straight session after coming under selling pressure for much of this year on concerns about new AI tools upending traditional business models.
“We’re seeing some of the selloff in AI, the fears in software services, start to dissipate,” Taylor said.
The Toronto market’s technology sector added 1.6%, with shares of e-commerce company Shopify Inc ending 2.6% higher.
Thomson Reuters Corp was one of the biggest gainers for a second straight day, adding 10.1%. The company announced a $600 million share buyback program and a $605 million return of capital.
Energy was a drag, falling 0.7%, as the price of oil settled 0.3% lower at $65.42 a barrel after a large US crude stock build.
Loblaw Companies Ltd shares fell 5.5% after the retailer’s quarterly revenue missed estimates, which contributed to a decline of 2.2% for the consumer staples sector. (Reporting by Fergal Smith and Utkarsh Tushar Hathi; Editing by Shreya Biswas and David Gregorio)
