TORONTO: Canada’s main stock index edged lower on Wednesday in a shortened Christmas Eve session as metal mining shares gave back some of this year’s sharp gains.
The S&P/TSX composite index ended down 58.97 points, or 0.2 percent, at 31,999.76, with trading volumes lower than usual. On Tuesday, the index posted a record closing high as the prospect of additional Federal Reserve interest rate cuts in 2026 helped boost commodity prices. Since the start of this year, the index has advanced 29.4 percent, led by financial and metal mining shares, putting it on track for its biggest gain since 2009.
“Equity valuation in Canada is above its longer term average but nowhere near bubble territory,” strategists at CIBC Capital Markets, including Christopher Harvey, said in a note this week.
“Importantly, tight IG (investment grade) credit spreads are a positive sign for EPS (earnings per share) growth. When combined with capex tailwinds from data center buildout and government infrastructure priorities we see double-digit EPS growth supporting an above average market multiple.”
Canadian Prime Minister Mark Carney has committed to spending billions of dollars on measures to raise productivity and is aiming to speed up natural-resource project construction. Domestic economic data was downbeat.
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