Canada’s main stock index rose on Monday as voters headed to the polls, with investors optimistic that the election outcome will bring much-needed clarity to the nation’s economic future.
The Toronto Stock Exchange’s S&P/TSX Composite Index closed up 88.08 points, or 0.4 percent, at 24,798.59. It marked the first time since early April that the index finished above its 2024 year-end level, fueled by recent hopes that global trade tensions could ease following Canada’s political reset.
Polling ahead of the vote indicated the ruling Liberal Party was favored to win the most seats, but the opposition Conservatives had significantly narrowed the gap. Regardless of which party ultimately formed the next government, analysts suggested that Canada is on track to elect a more business-friendly leadership than in previous years, with both major parties proposing policies aimed at boosting economic growth.
“The Canadian economy craves certainty,” said Shiraz Ahmed, senior portfolio manager and founder of Sartorial Wealth at Raymond James. “No matter which candidate prevails, their policies will provide the market with a clearer economic direction domestically.”
Several major sectors helped lift the TSX. Financials, the index’s most heavily weighted group, along with technology and energy stocks, each gained 0.4 percent on the day. Energy shares rose despite a dip in oil prices, with crude settling 1.5 percent lower at $62.05 per barrel due to ongoing concerns about global demand.
Meanwhile, gold prices climbed by 1 percent, giving a boost to metal mining companies. As a result, the materials sector ended the session up 0.3 percent. However, not all sectors shared in the rally. Industrials slipped by 0.5 percent, weighed down by weakness in railroad stocks, while the healthcare sector posted the sharpest decline, falling 1.4 percent.
As Canada awaits the final election results, investors are positioning for a more stable and growth-oriented economic environment, signaling cautious optimism for the remainder of 2025.
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