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TSX ends up 0.2% at 25,203.98
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BMO gains 4.7% after earnings beat
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Defensive stocks rise amid risk aversion
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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.