TSX posts near one-month high as investors eye seasonal boost

By Fergal Smith

(Reuters) - Canada's main stock index edged up to a near one-month high on Tuesday as investors set aside lingering uncertainty about U.S. trade tariffs and bet that seasonality could soon begin working in the market's favor.

Toronto Stock Exchange's S&P/TSX composite index ended up 35.40 points, or 0.1%, at 25,339.51, its highest closing level since February 28.

Concern that U.S. tariffs would fuel inflation and hurt economic growth has weighed on investor sentiment globally this year.

"After several months of tariff headlines, interest rate and geopolitical uncertainty, many investors are sitting on the sidelines or defensively positioned," said Brandon Michael, senior investment analyst at ABC Funds.

"The fewer people positioned for upside, the more explosive the move can be when things start to turn. So we believe the recent pullback in equities is providing a great opportunity for long-term investors."

Wall Street also ended higher as investors assessed consumer sentiment data and bet on a more flexible trade policy stance from the Trump administration next week.

"The positive momentum we’re experiencing could lead into April, which is historically the best month of the entire year." Michael said.

The consumer staples sector added 0.9%, helped by a gain of nearly 4% for the shares of specialty food manufacturing company Premium Brands Holdings Corp.

The materials group was up 0.7% as copper prices climbed and despite a decline in the shares of fertilizer producer Nutrien Ltd.

Nutrien's shares ended 4.8% lower as the United States said it will help restore Russia's access to the world market for agricultural and fertilizer exports.

(Reporting by Fergal Smith in Toronto and Ragini Mathur and Sanchayaita Roy in Bengaluru; Editing by Sahal Muhammed and Deepa Babington)