TSX rises by most in a year on hopes war almost over

Canada's main stock market rebounded on news that Iran is open to ending the war the United States and Israel started over a month ago. Photo by Peter J. Thompson /Financial Post

Article content

Canadian stocks are about to notch their most exuberant trading session in nearly a year after reports suggested that the president of Iran is ready to end the war.

Article content

The S&P/TSX composite index rose as much as 2.6 per cent on Tuesday, its biggest intraday surge since April 2025, led by a rally in precious metals producers. Toronto-based miner Americas Gold and Silver Corp. posted the most gains, climbing up to 13 per cent.

Article content

Article content

Article content

Although the gauge’s tech stocks faced heavy pressure during the first quarter this year, e-commerce firm Shopify Inc., the third-largest stock in the benchmark by weight, contributed the most points to the index’s gains, rising by as much as six per cent.

Article content

Article content

Iranian President Masoud Pezeshkian reiterated that his country wants certain requirements to be met before it ends hostilities against the United States and Israel. Before his remarks, U.S. President Donald Trump reportedly expressed a willingness to end the military campaign against Iran.

Article content

“People are almost making too much of it — maybe trying to save the month with some good news,” said Greg Taylor, chief investment officer at PenderFund Capital Management Ltd. The TSX has fallen 4.7 per cent in March despite Tuesday’s gains.

Article content

Canadian investors would be keen to see the war end because it would likely mean a drop in the value of the U.S. dollar, which has weighed on the performance of commodity producers, he said.

Article content

“There’s some optimism that the TSX could rebound because if we go back to a lower-U.S. dollar, higher-commodity world, that’s a pretty good setup for Canada,” Taylor added.

Article content

Article content

Lori Pinkowski, senior portfolio manager at Pinkowski Wealth Management, which is a part of CG Wealth Management, said while the beginning of the end of the conflict is important, it would be better once ships are flowing through the Strait of Hormuz.

Article content

“That would also give us that confidence to put some money to work,” Pinkowski said Tuesday on BNN Bloomberg.

Article content

Since the conflict started in late February, Canada’s main stock-market benchmark was under pressure when the battle triggered a gold producer meltdown as the sector has a 14 per cent weighting in the broader gauge.

Article content

“You just want to be cautious in this environment, it’s good to get excited, it’s good to see a green day like today,” Pinkowski said. “And on the flip side, it’s important not to panic in situations of geopolitical conflict or tensions because often in history, those have been buying opportunities.”

Article content

Article content