The Canadian stock market saw gains on Tuesday, bouncing back from a recent decline in performance, driven by robust activity in the technology sector. This rebound followed Monday's dip, which broke a nine-day winning streak for the market.
Investors are now eagerly anticipating the Bank of Canada's upcoming monetary policy announcement. The consensus among analysts is that the central bank will likely reduce interest rates on Wednesday. Meanwhile, the Federal Reserve is also set to reveal its monetary policy tomorrow. While the Fed is expected to maintain current interest rates, all eyes will be on their accompanying statement for any signals.
The S&P/TSX Composite Index rose by 130.30 points, closing at 25,419.45. During the session, it reached a low of 25,277.05 and peaked at 25,425.86.
In the technology sector, the Information Technology Capped Index surged by 4.41%. Notable performers included Shopify Inc, which jumped 9.6%, and Celestica, which increased by approximately 8.25%. Blackberry rose 6.5%, Sylogist ended 3.8% higher, and companies like Open Text Corp, Constellation Software, Dye & Durham, Lightspeed Commerce, Kinaxis Inc, Enghouse Systems, and CGI Group Inc saw gains ranging from 1.3% to 3%.
In other sectors, Molson Coors Canada experienced a significant increase of 11.1%, while Canada Goose Holdings saw a 9.7% rise. Propel Holdings climbed 6.7%, and Telesat Corporation finished the day up by 5.9%.
Other notable gainers included Velan Inc, TerraVest Industries, MDA Space, Dayforce, Cameco Corporation, Wheaton Precious Metals, K-Bro Linen, and AtkinsRealis, all of which advanced by 2% to 5%.
However, Metro Inc saw a decline of over 3%, despite reporting a 13.6% increase in net earnings to $259.5 million for the first quarter of fiscal 2025. Their adjusted net earnings for the period rose by 4.4% to $245.4 million compared to the same quarter last year.
On the downside, Bombardier Inc, BRP Inc, Ivanhoe Mines, Teck Resources, Aecon Group, Boralex, Methanex Corporation, and Precision Drilling Corporation recorded losses ranging from 2.5% to 4%.
