By Tharuniyaa Lakshmi and Fergal Smith
May 25 (Reuters) – Canada’s main stock index rose to a record closing high on Monday as the prospect of a deal to end the war in the Middle East boosted investor sentiment, with technology and metal mining shares among the biggest gainers.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 359.53 points, or 1%, at 34,830.89, eclipsing the record closing high it posted on March 2.
• Iran’s top negotiator and its foreign minister were in Doha for talks with Qatar’s prime minister on a potential deal with the U.S. to end the three-month war, an official briefed on the visit said.
• “There have been repeated false hopes of a resolution, but this is how markets trade … even a non‑zero chance the conflict ends is enough to push stocks higher and oil lower, though we’re not 100% convinced this is the real deal,” said Brian Madden, chief investment officer at First Avenue Investment Counsel.
• The materials sector, which includes metal mining shares, rose 4.4% as gold prices climbed on easing fears of inflation and higher-for-longer interest rates.
• Shares of Hudbay Minerals rose 8.9% and those of First Quantum Minerals were up 8.4%.
• The technology sector added 2.1% and financials ended 0.9% higher.
• Canada’s major banks, which include Royal Bank of Canada and Toronto-Dominion Bank, the two highest-weighted stocks on the TSX, are due to report quarterly results on Wednesday and Thursday, respectively.
• Energy was the only major sector to end lower, losing 3.4%, as the price of oil declined 6.5%.
• Much of Canada’s oil is produced in Alberta. Prime Minister Mark Carney said the province’s planned vote on potentially breaking away from the rest of Canada, while not binding, could become “a dangerous bluff.”
• The TSX has advanced 9.8% since the start of the year after advancing 28.2% in 2025.
(Reporting by Fergal Smith in Toronto and Tharuniyaa Lakshmi in BengaluruEditing by Rod Nickel and Paul Simao)