TSX Closes Out the Month with a Decline, Notching Its Largest Monthly Advance Since 2020

TSX Ends Down 0.5% at 34,339.99 Despite Monthly Gain

On February 27, Canada's main stock index, the TSX, closed down 161.97 points, or 0.5%, at 34,339.99. This decline comes after the index posted a record closing high in the three previous days. The S&P/TSX composite index's monthly gain of 7.6% is its biggest since November 2020, driven by higher gold prices and stronger-than-expected bank earnings.

Market Performance

The tech sector fell 2.5% on Friday, with Shopify Inc shares decreasing 4.3%. The financials sector ended 1.9% lower, while consumer discretionary was down 1%, with Aritzia shares dropping 7.8%. In contrast, the energy sector added 1.2% as the price of oil settled 2.8% higher at $67.02 a barrel. The materials group, which includes metal mining shares, was up 1% as the price of gold advanced 1.4% due to safe-haven demand.

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Economic Data

Canada's gross domestic product fell at an annualized pace of 0.6% in the October-December quarter, marking the slowest year of growth since 2020. Manufacturers dipped heavily into inventories to meet demand, contributing to the decline.