Toronto Stocks Decline, But Remain On Track for Weekly Gains

By Robb M. Stewart

Shares on Canada's main exchange retreated Friday, echoing Wall Street's pullback on the last trading day of the month as investors grow increasingly worried about the boom in artificial intelligence.

In midday trading, the Toronto Stock Exchange's S&P/TSX Composite Index was 0.5% lower at 34341.05. That ate into the prior session's advance but still has the index heading for a 1.5% rise this week and a gain of 7.6% in February.

Technology stocks led the move lower, with Constellation Software leading the losers board with a fall of 2.8%. Heavily-weighted Shopify also dragged on the market, losing 4.7%.

The blue-chip S&P/TSX 60 was down 0.6% at 1974.52.

Data released ahead of the opening bell Friday showed that Canada's economy contracted 0.6% in annual terms in the final quarter of last year, a slightly deeper contraction than expected. Still, the decline was driven largely by a large drawdown in business inventories despite a rise in exports, as well as a rise in both household and government spending.

Economists said the underlying resilience reflected in the data is likely allow the Bank of Canada to remain on the sidelines, having already left its policy interest rate unchanged twice in a row amid heightened trade uncertainty and geopolitical risk.

Other market movers:

TransAlta's shares climbed 4.4% to C$18.59 after the power-generation company recorded a narrowed loss in the fourth quarter of 2025.

Laurentian Bank was little changed after the lender reported a loss for the first quarter of its fiscal year, contrasting with stronger-than-expected underlying earnings for Canada's biggest banks.

AtkinsRealis was 2.9% lower at C$93.29 despite the engineering and project management company posting a rise in profit and revenue in the fourth quarter, with momentum expected to carry into 2026.

Write to Robb M. Stewart at [e-mail]

(END) Dow Jones Newswires

02-27-26 1255ET