* TSX ends up 2.6% at 32,768.04
* For March, the index loses 4.6%
* Materials group jumps 6.1% as gold rallies
* Technology adds 4.8% (Updates at market close)
March 31 (Reuters) – Canada’s main stock index rallied on Tuesday by the most since April as investors welcomed signs of potential de-escalation in the Middle East conflict, but the index still posted its biggest monthly decline in nearly three years.
The Toronto Stock Exchange’s S&P/TSX Composite Index ended up 833.10 points, or 2.6%, at 32,768.04, notching its highest closing level since March 17.
For March, the index was down 4.6%, which was its biggest monthly decline since May 2023. Still, it was up 3.3% in the first quarter, marking the seventh straight quarterly advance.
Wall Street also surged on Tuesday after a report that U.S. President Donald Trump had told aides he was prepared to halt the military campaign against Iran even if the Strait of Hormuz remained largely closed.
“We had very deep oversold conditions within (growth-oriented) parts of the market – tied to financials, consumer discretionary as well as industrials – that are now showing a reasonable bounce,” said Sid Mokhtari, chief market technician for CIBC Capital Markets.
“We’re still unsure whether or not this bounce can sustain itself going forward, but it is healthy to see at least some recovery.”
The conflict has sent oil prices soaring in recent weeks, fueling fears of global inflation that could lead to higher interest rates than previously expected. Domestic data was upbeat. It showed that GDP rose by 0.1% in January on a monthly basis, eclipsing estimates for a flat reading. An advance estimate showed the economy expanding by a further 0.2% in February.
The materials group, which includes metal mining shares, jumped 6.1% as gold and copper prices climbed.
Technology added 4.8% and heavily weighted financials ended 2.5% higher.
Suncor Energy said the majority of its bitumen output by 2040 will be produced using steam-assisted extraction technology. Its shares ended 0.1% higher. Still, energy was the only one of ten major sectors to lose ground, falling 0.6% as the price of oil settled 1.5% lower at $101.38 a barrel. For March, energy added nearly 15%. (Reporting by Fergal Smith in Toronto and Rashika Singh in Bengaluru; Editing by Diti Pujara and Deepa Babington)
