TSX edges higher as energy shares gain

Canada’s benchmark stock index rose on Wednesday, boosted by energy shares, after crossing the 30,000-point threshold for the second straight day.

Toronto’s commodity-heavy S&P/TSX composite index added 0.3% to 29,912.19 points by 10:20 a.m. ET.

The S&P/TSX smallcap index rose 1.1% after Reuters reported that the Trump administration is seeking an equity stake of as much as 10% in Lithium Americas boosting the Canadian company’s shares by 88%.

Its U.S.-listed shares jumped 85%.

“It is unclear if/how the DOE loan could be renegotiated and if there will be any legal ramifications,” J.P. Morgan analysts said in a note.

“It’s difficult to quantify what fair value a 10% government stake should be valued at amid unanswered questions such as what, if any, revised offtake agreement(s) could look like.”

Energy stocks led sectoral gains with a 2.3% rise, as Vermilion Energy climbed 4.7%.

Materials stocks rose as First Quantum FM.TO and Teck Resources climbed 6% and 5.5%, respectively.

Hudbay Minerals said the temporary shutdown at its Peru mill would not affect its ability to meet 2025 production and cost forecast range, sending its shares up 6.7%.

Technology shares recovered from a dip in the previous session. Open Text Corp and Constellation Software rose 4.6% and 3%, respectively, while BlackBerry gained marginally ahead of quarterly results.

Flash estimate data showed that Canada’s factory sales likely dropped 1.5% in August due to lower sales in transportation equipment and food product subsectors.

Meanwhile, Prime Minister Mark Carney said he had “constructive” trade talks with Chinese Premier Li Qiang as the countries seek to discuss trade conflicts.

Separately, Carney said trade negotiations with the U.S. were ongoing, with remaining issues to move to a forthcoming review of the U.S.-Mexico-Canada trade agreement.