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CANADA STOCKS-TSX ends higher as bank earnings offset tech stock worries
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CANADA STOCKS-TSX ends higher as bank earnings offset tech stock worries
Feb 25, 2025 1:40 PM

*

TSX ends up 0.2% at 25,203.98

*

BMO gains 4.7% after earnings beat

*

Defensive stocks rise amid risk aversion

*

Tech and energy shares post declines

(Updates at market close)

By Fergal Smith

Feb 25 (Reuters) - Canada's main stock index rose on

Tuesday as stronger-than-expected bank earnings offset a drop in

oil prices and worries about the growth prospects for

high-flying technology shares.

The S&P/TSX composite index ended up 52.72 points,

or 0.2%, at 25,203.98, clawing back some recent losses. On

Friday, the TSX posted its lowest closing level since Jan. 17.

Wall Street was mixed , with the tech-heavy Nasdaq hitting a

six-week low, after fresh economic data indicated a

deterioration in consumer sentiment and investors braced for the

potential impact of tighter U.S. trade curbs on Beijing.

"It's just a rotation from growth to value, from momentum to

defensive," said Ian Chong, a portfolio manager at First Avenue

Investment Counsel Inc, adding that investors are concerned that

AI-related capital expenditure isn't going to live up to

expectations.

Heavily weighted financials advanced 0.8% as Bank of Nova

Scotia ( BNS ) and Bank of Montreal ( BNKD ) beat analysts'

expectations for quarterly profit. Shares of BMO rose 4.7%,

while Scotiabank was down 1.2%.

Risk aversion was a tailwind for defensive stocks, said

Chong.

Consumer staples added 1.6%, helped by a gain of 10.6% for

Maple Leaf Foods Inc ( MLFNF ) after the company's fourth-quarter

earnings beat estimates.

Real estate and utilities gained ground as bond yields fell.

The Canadian 10-year yield touched a near three-week

low at 2.979%.

Technology lost 1.2%, with shares of electronic equipment firm

Celestica Inc ( CLS ) down nearly 4%.

Energy was also a drag, falling 1.6%, as the price of oil

fell to a two-month low on weak economic news from the U.S. and

Germany that fed fears of slower energy demand. U.S. crude oil

futures settled down 2.5% at $68.93 a barrel.

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