The Toronto Stock Exchange’s main index closed on a high note Monday, extending its impressive June rally amid renewed investor confidence and strong performances across multiple sectors. The S&P/TSX Composite Index finished the session up 157.32 points at 24,876.51, bringing its monthly gain to nearly 3.8 percent as the first half of 2025 draws to a close.
Energy stocks led the charge, surging 2.7 percent as crude oil prices stabilized above $84 per barrel following OPEC+’s announcement to maintain current production cuts through Q3. Suncor Energy jumped 3.2 percent while Canadian Natural Resources added 2.9 percent, both benefiting from the supportive pricing environment.
“What we’re seeing is a perfect storm of positive catalysts,” explains Michael Hernandez, chief market strategist at Meridian Capital. “The Bank of Canada’s pause on interest rates combined with resilient corporate earnings has created a comfort level for investors that wasn’t there just a few months ago.”
Technology shares continued their remarkable comeback, with the sector climbing 1.8 percent on Monday. Shopify advanced 2.5 percent after announcing expansion of its fulfillment network, while Constellation Software hit an all-time high, gaining 1.7 percent.
The financial sector, representing nearly one-third of the composite index, added a modest 0.9 percent. Royal Bank of Canada and Toronto-Dominion Bank both rose approximately 1 percent, helping to solidify the broader market’s gains.
Materials stocks found support as gold prices hovered near $2,550 an ounce. Barrick Gold added 1.3 percent, while Franco-Nevada climbed 1.6 percent, with precious metals continuing to attract investors seeking inflation hedges.
Trading volume remained robust at 287 million shares, about 12 percent above the 30-day average, indicating strong participation across institutional and retail segments.
“The Canadian market is displaying remarkable resilience compared to previous cycles,” notes Jennifer Wu, portfolio manager at Northview Asset Management. “The composition of the TSX with its resource-heavy weighting is finally working in its favor as global demand for commodities remains elevated.”
Looking ahead, market watchers remain cautiously optimistic about the index’s prospects for the second half of 2025, though challenges linger on the horizon.
“While inflation appears to be moderating, we’re still monitoring potential ripple effects from ongoing global trade tensions and housing market pressures domestically,” Wu adds.
The positive performance comes as Statistics Canada is set to release its May GDP figures later this week, which economists expect will show modest growth of 0.2 percent, potentially reinforcing the market’s upward trajectory if the numbers meet or exceed expectations.
As June draws to a close, the TSX’s year-to-date gain stands at 8.6 percent, outpacing several major global indices and suggesting Canadian equities may be recapturing investor attention after years of relative underperformance.
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