* TSX ends up 0.5% at 33,942.86
* Tech gains 2.2%, with Shopify up 6%
* Services economy shrinks for fourth month (Updates at market close)
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 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 rose 2.2%, led by a 6% gain for the shares of e-commerce company Shopify Inc.
Both heavily weighted financials and the materials group, which includes metal mining shares, added 0.5%. The price of gold rose 1% as the recent rally in the U.S. dollar paused.
SSR Mining 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 and consumer staples, which both lost 0.7%. (Reporting by Fergal Smith and Utkarsh Tushar Hathi; Editing by Shreya Biswas and Alistair Bell)
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