CANADA STOCKS-TSX rebounds as technology sector gains over 2%

Reuters03-05
CANADA STOCKS-TSX rebounds as technology sector gains over 2%

TSX ends up 0.5% at 33,942.86

Tech gains 2.2%, with Shopify up 6%

SSR Mining jumps 14.6%

Services economy shrinks for fourth month

Updates at market close

By Fergal Smith

TORONTO, March 4 (Reuters) - Canada's main stock index clawed back on Wednesday some of the previous day's sharp declines as technology shares climbed and the Middle East conflict pressed investors to take stock of their portfolios.

The S&P/TSX composite index .GSPTSE ended up 157.92 points, or 0.5%, at 33,942.86, but held well below the record closing high that was set on Monday.

U.S. stocks also closed up after a news report that Iran had signaled openness to talks on ending the war.

"During wars it's often good to take a pause and take a look at what it is you own and why you own it," said Michael Sprung, president at Sprung Investment Management.

"Over the last number of years there hasn't been that much turmoil ... Maybe people are just beginning to rethink it."

The Toronto market's technology sector .SPTTTK rose 2.2%, led by a 6% gain for the shares of e-commerce company Shopify Inc SHOP.TO.

Both heavily weighted financials .SPTTFS and the materials group .GSPTTMT, which includes metal mining shares, added 0.5%. The price of gold XAU= rose 1% as the recent rally in the U.S. dollar .DXY paused.

SSR Mining SSRM.TO said it had entered a binding memorandum of understanding to sell its 80% stake in Turkey's Copler mine to Cengiz Holding A.S. for $1.5 billion in cash, sending its shares up 14.6%.

"More of the focus going forward is going to be on the economic side, looking at where we are vis-a-vis interest rates and trade," Sprung said.

Canada's services economy contracted for a fourth straight month in February as an uncertain trading environment contributed to declines in activity and new business, S&P Global's Canada services PMI data showed.

Four of the 10 major sectors ended lower, including industrials .GSPTTIN and consumer staples .GSPTTCS, which both lost 0.7%.

(Reporting by Fergal Smith and Utkarsh Tushar Hathi; Editing by Shreya Biswas and Alistair Bell)

((fergal.smith@thomsonreuters.com; +1 647 480 7446))

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