Shopify helps lift Toronto market to record high
5:31 pm Tuesday, November 12th, 2024
By Fergal Smith
(Reuters) -Canada’s main stock index rose to a record high on Tuesday as gains for technology shares, led by e-commerce company Shopify Inc, offset pressure on resource shares due to a stronger U.S. dollar.
The S&P/TSX composite index ended up 133.73 points, or 0.5%, at 24,923.01, eclipsing the record closing high it notched last Thursday.
“Shopify has been a great performer. Expensive as can be, but yet the market doesn’t seem to care based on valuation,” said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth.
Shares of Shopify jumped 21.4% after the company forecast fourth-quarter sales growth above estimates as a focus on employing AI-powered tools in its e-commerce services pulled in more merchants ahead of the crucial holiday season. The firm also topped market expectations for third-quarter revenue.
The technology sector was up 6.4%, one of only two major sectors to notch gains. The other was consumer staples, which added 0.9%.
“A strong dollar in the U.S., interest rates higher in the U.S., these are things that don’t usually bode well for the Canadian markets based on commodities and oil,” Small said.
The U.S. dollar climbed to a six-month high against a basket of major currencies, while the U.S. 10-year yield was up 12 basis points at about 4.43%.
The materials sector fell 1.5% as gold and copper prices fell. Energy was also down, losing 1.1%. The price of oil settled 0.1% higher after two days of sharp declines.
(Reporting by Fergal Smith in Toronto and Nikhil Sharma in Bengaluru; Editing by Marguerita Choy)
