CANADA STOCKS-TSX flat as Middle East tensions keep investors cautious
By Rashika Singh
March 24 (Reuters) - Canada's main stock index was little changed on Tuesday, as relief from U.S. President Donald Trump's decision to pause strikes on Iran's energy infrastructure faded, leaving investors grappling with uncertainty over the war.
At 10:49 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 0.1% at 31,922.07.
Gains in heavy-weight energy shares .SPTTEN, up 3%, helped offset weakness elsewhere.
Oil prices rose on the day amid supply concerns after Iran denied holding talks with the U.S. to end the Gulf conflict, contradicting Trump's claims that a deal could soon be reached.
"We remain in a headline‑driven market, with uncertainty around the duration of the conflict continuing to dictate sentiment," said Angelo Kourkafas, senior global investment strategist at Edward Jones.
With crude among Canada's key exports, the country's stock market is especially vulnerable to shifts in oil prices, and the war has intensified inflation fears by lifting global energy costs.
Canadian discount retailer Dollarama DOL.TO fell 7.4% after forecasting 2027 sales largely below estimates. It weighed on the consumer discretionary sector .GSPTTCD, which dropped 1.5%.
"High energy costs are tightening household budgets, so even though Dollarama caters to value‑seeking consumers, the broader squeeze on purchasing power will inevitably show up across both discretionary and staples categories," Kourkafas said.
Utilities .GSPTTUT and consumer staples .GSPTTCS, both defensive sectors, were up 1% and 0.3%, respectively.
Technology stocks .SPTTTK fell 2.4%.
On Monday, the benchmark index notched its biggest gain in five weeks, lifted by hopes of easing Middle East tensions.
Among other movers, TransAlta Corp TA.TO jumped 4.8% after National Bank of Canada upgraded the power producer to "outperform" from "sector perform."
Shares of non-prime lender goeasy rose 4% after its lenders waived compliance with certain fourth-quarter financial covenants, following the company’s disclosure of about C$178 million in charge-offs and write‑downs tied to its LendCare unit.
