TSX Tech Gains Offset by Tariff-Driven Slump in Industrials

The Canadian benchmark S&P/TSX Composite Index experienced a volatile Wednesday, initially climbing to a six-week peak before paring most of its gains. The index settled at 34,128.31, representing a marginal increase of 0.08% or 25.95 points. Market sentiment was split between optimism over potential U.S.-Iran diplomatic talks and severe headwinds facing Canadian exporters. While the tech sector surged, the consumer discretionary and materials sectors faced significant downward pressure, with gold miners seeing losses between 3.4% and 7.5%. The Information Technology Capped Index jumped 2.75%, led by Shopify Inc., which rose nearly 6%. Constellation Software gained 3% following the announcement that its Vela Software operating group, Juniper Group, had acquired a majority stake in Derbysoft Holdings Limited. Financials also saw gains, with Onex Corporation rising nearly 3%. The primary drag on the market was BRP Inc., which plummeted nearly 35%. The company suspended its fiscal 2027 outlook after new U.S. tariffs on steel, aluminum, and copper—effective April 6—are expected to cost the firm over $500 million for the remainder of the year. This follows previous projections of net income between C$410 million and C$480 million on revenues of up to C$9.150 billion. Other industrial players felt the impact, with Linamar Corp shedding 9% and Magna International losing 3%. On the macro front, Statistics Canada reported February manufacturing sales rose 3.6%, slightly missing the 3.8% forecast, while wholesale sales grew by 2%, below the expected 2.3%.