02.02.202615:14:01UTC+00TSX Rebounds After Sharp Selloff

On Monday, the S&P TSX Composite saw an uptick of approximately 0.5%, surpassing the 32,050 mark. This increase was driven by robust performances in the financial, technology, and gold mining sectors, which counterbalanced the renewed downturn in the energy market. Leading the charge were Canada's prominent banks—Royal Bank, TD, BMO, Scotiabank, and CIBC—which each posted gains between 0.7% and 1.9%. These gains were underpinned by strong earnings forecasts, appealing dividends, and attractive valuations, sustaining momentum from last year's rally. Additionally, Shopify made a significant impact, rising nearly 3%, as investors showed a preference for high-quality growth companies with solid financial foundations. In the materials sector, firms like Agnico Eagle, Barrick, and Wheaton saw increases of over 1%, recovering somewhat from Friday's sharp declines despite a dip in gold prices. Conversely, energy stocks such as Canadian Natural, Cenovus, and Tourmaline fell behind due to dropping oil prices. Furthermore, the return of Canada's manufacturing PMI to expansion territory in January for the first time in a year helped to alleviate fears of immediate industrial weaknesses.