(Updates at market close)
* TSX ends up 0.5% at 35,749.70
* Eclipses Monday’s record closing high
* Tech adds 5.1%, with Celestica up 9.5%
* Materials group loses 1.6% as gold falls
TORONTO, July 28 (Reuters) – Canada’s main stock index rose to another record high on Tuesday, benefiting from a global rotation out of semiconductor stocks into sectors more favorable for the domestic market.
The S&P/TSX Composite Index ended up 181.56 points, or 0.5%, at 35,749.70, eclipsing Monday’s record closing high.
* U.S. benchmark, the S&P 500, also rose as gains in Boeing and Coca-Cola helped offset tumbling chip stocks ahead of quarterly reports from Apple and other tech companies this week.
* “It’s more of a rotation in the market,” said Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James, adding that investors were shifting out of semiconductor stocks into financial and software stocks.
* The technology sector rose 5.1%, with shares of Celestica adding 9.5% after the electronic equipment firm beat earnings estimates. Constellation Software was another standout, adding 6.4%.
* Heavily weighted financials rose 1.1% and consumer staples ended 2% higher.
* Investors were awaiting an interest rate decision by the Federal Reserve on Wednesday, with the bar for an interest rate hike likely higher than reflected in rate futures markets.
* “The Fed meeting tomorrow could probably dictate where we go from here,” Dehal said.
* The materials group, which includes metal mining shares, was a drag, falling 1.6%, as the price of gold dropped.
* Oil also lost ground, settling 4.1% lower at $79.26 a barrel, on cautious hopes that the pause in fighting between the United States and Iran will lead to talks to end the war. Energy was down 1%. (Reporting by Fergal Smith in Toronto and Sudeshna Ghoshal and Niket Nishant in Bengaluru; Editing by Vijay Kishore, Maju Samuel, Rod Nickel)
