Shopify Pushes Canada Stocks Gauge Over 25,000 in Record Rally

Canada’s stocks benchmark crossed above 25,000 points for the first time as information technology stocks spearheaded the rally.

(Bloomberg) — Canada’s stocks benchmark crossed above 25,000 points for the first time as information technology stocks spearheaded the rally.

The S&P/TSX Composite Index gained as much as 1% to briefly hit a new high of 25,024.93 before paring gains. The benchmark has posted 35 closing records this year. 

Sharp gains in Shopify Inc. tipped the index over the key threshold after the Canadian tech darling’s third-quarter’s revenue came in ahead of analyst expectations. Shares in the e-commerce firm, which has the largest weighting in the gauge, gained by more than 25%. 

Financials also staged a rebound after a sluggish 2023 and are expected to continue performing well under a Donald Trump presidency, with anticipated tax cuts and easing regulations.

“I think this is a big psychological lift for the Canadian market,” said SIA Wealth Management portfolio manager and chief market strategist Colin Cieszynski, who attributes the recent rally to the sharp gains in both banks and in Shopify.

Banks and software companies make up a collective 42% of the S&P/TSX Composite.

The benchmark started this year just below 21,000 points and has since grown by over 19% year-to-date, ending a holding pattern last year when Canadian stocks were weighed by higher interest rates and struggled to gain traction. 

It traded above the 23,000-point mark for the first time in July, driven by Bank of Canada rate cuts. And just two months later, the index closed above 24,000 as mining stocks rallied with commodity prices.