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TSX gains 18.5% in 2024

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Records best year since 2021

(Updates to close)

By Nivedita Balu

Dec 31 (Reuters) - Canada's main stock index recorded

its best year since 2021 on Tuesday, the last trading day of the

year historically considered as favorable for equities,

navigating a number of macroeconomic and global uncertainties in

2024.

The S&P/TSX composite index gained 18.5% in 2024.

It was up 107.35 points, or 0.44%, at 24,727.94 on Friday,

largely boosted by energy stocks.

"What truly defined 2024 was the broadening participation of

the rally. This breadth of market leadership is emblematic of

bullish sentiment, reflecting renewed investor confidence and

enthusiasm," said Brandon Michael, senior investment analyst at

ABC Funds.

In the United States, the bellwether S&P 500 notched more

than a 23% gain, marking the index's best two-year run since

1997-1998, while the Nasdaq surged nearly 30%.

Looking ahead to 2025, market participants have scaled back

their expectations for significant rate cuts by the Fed in 2025

and are preparing for potential policy shifts with Donald

Trump's return to the White House.

"While we anticipate volatility, we expect the market to

climb higher in a sawtooth pattern, ultimately reaching new

highs," Michael said.

Investors will focus on upcoming monthly employment data

from Canada and the United States, which will offer insights

into the monetary policy direction in both countries.

The TSX index, however, fell 3.4% in December, its first in

six months and its worst since May 2023, as the U.S. Federal

Reserve's hawkish policy announcement and domestic political

uncertainty made investors cautious.

The commodity-heavy index benefited on Tuesday as the energy

sector gained 1.5%, tracking higher oil prices.

Most sectors inched higher, with communication services

gaining 1.3% gain, materials gaining 0.9%,

healthcare adding 0.6%.

Most markets across the globe, including Canada, will be

closed on Wednesday on account of the New Year holiday.