Technology, Materials Stocks Shine As TSX Climbs To New Record High

(RTTNews) - The Canadian market climbed to a fresh record high on Monday, riding on strong gains in materials and technology sectors. The mood was upbeat at the start following the U.S. and Iran reaching a tentative agreement to end their conflict.

The preliminary framework agreed to by the two nations includes halting the U.S. blockade of Iran and reopening of the Strait of Hormuz. According to reports, an official signing ceremony is scheduled to take place in Switzerland on June 19.

US President Donald Trump announced the agreement on Truth Social on Sunday, saying, "The Deal with the Islamic Republic of Iran is now complete."

"Let the oil flow!" the U.S. President exclaimed and declared that the "great deal" would bring "peace and security to the whole region."

The benchmark S&P/TSX Composite Index, which rose to 35,398.32, dropped to 35,264.10, up 326.25 points or 0.93% from previous close.

The Materials Capped Index climbed 5.8%, as several stocks in the sector moved up sharply, riding on firm precious metals prices. G Mining Ventures zoomed 15.3%. Aya Gold & Silver, Montage Gold Corp., Americas Gold & Silver, Torex Gold Resources, Aris Mining Corporation, Eldorado Gold and Silvercorp Metals gained 9%-11%.

The Information Technology Capped Index gained 2.3%. Shopify climbed 6%, while Coveo Solutions, BlackBerry and Lightspeed Commerce gained 4%-5%. Open Text Corporation, Computer Modelling, Firan Technology, Docebo, Celestica and Descartes Systems Group moved up 1%-2.3%.

Real Matters, Cameco, Boyd Services, ATS Automation Tooling Systems, Aurora Cannabis, Aecon, Finning International, Gildan Activewear, SNC Lavalin, Tilray and Aritzia were among the prominent gainers from other sectors.

Vermilion energy, Baytex Energy, Gran Tierra Energy, Precision Drilling, Methanex, Cenovus Energy, Birchcliff Energy, Suncor Energy, Parex Resources, Kelt Exploration, Canadian Natural Resources, Paramount Resources, Tourmaline Oil Corporation, Arc Resources, Nutrien and Imperial Oil shed 2%-6%.

In economic news, data from Canada Mortgage and Housing Corporation showed housing starts in Canada fell 6.1% from the previous month to a seasonally adjusted annual rate of 261,400 units in May, above forecasts of 255,100 units.

Data from Statistics Canada showed manufacturing sales in Canada rose 4.2% month-over-month to a record C$77.1 billion in April, following a 3.4% increase in March and marking the strongest growth since February 2022.

Wholesale sales in Canada expanded by 0.6% from the previous month to C$89.3 billion in April, revised higher from the preliminary estimate of a 0.1% growth rate, to reflect the third consecutive increase in the sector.