TSX ends up 1% at 31,477.57
Eclipses Friday’s record closing high
CIBC shares rise 4.1% after earnings beat
Shares of Decartes jump 14.4%
(Updates at market close)
Dec 4 (Reuters) – Canada’s main stock index rose to a record high on Thursday as stronger-than-expected bank earnings boosted financial shares and investors bet on an improving economic outlook next year.
The S&P/TSX Composite index ended up 317.03 points, or 1%, at 31,477.57, eclipsing the record closing high it posted last Friday.
“The glass half-full interpretation is markets are forward-looking,” said Brian Madden, chief investment officer at First Avenue Investment Counsel. “The fact that markets are strong is probably discounting an improving economic backdrop going into 2026.”
Canada’s economy has been held back this year by trade uncertainty. Still, it grew much more than expected in the third quarter and could get a lift from increased fiscal spending.
Canadian Prime Minister Mark Carney has committed billions of dollars to fight U.S. tariffs, boost defense spending and diversify trade.
Canadian lenders TD Bank, Bank of Montreal and CIBC topped analyst estimates for fourth-quarter profit, boosted by their capital markets businesses that benefited from a rebound in dealmaking and higher trading revenue.
Shares of CIBC and TD rose 4.1% and 2% respectively to record highs, while BMO’s shares ended 0.1% lower.
The other three big-six banks – Royal Bank of Canada Scotiabank and National Bank of Canada – reported earlier in the week and they too beat estimates.
Energy added 0.3% as the price of oil settled 1.2% higher at $59.67 a barrel. Investors’ expectations for the Federal Reserve to cut interest rates and stalled Ukraine peace talks helped underpin oil prices.
Logistics software firm Descartes Systems Group Inc was a standout. Its shares jumped 14.4% after the company’s third-quarter revenue beat estimates.
The technology sector was up 2.7% and consumer staples added 1.3%. (Reporting by Fergal Smith in Toronto and Avinash P in Bengaluru; Editing by Sahal Muhammed and Alistair Bell)
