Investors in Canada’s stock market must be beaming over the consistently positive performance of the market in recent weeks.
Immediately after the market opened on Thursday, the Toronto Stock Exchange’s S&P/TSX composite index jumped over the 20,000 mark for the first time in two months.
Even though the market eventually ended slightly below 20,000, Thursday’s closing at 19,991.88 saw the market gaining 105.94 points, representing 0.5 per cent.
On Wednesday, the index gained whopping 307.64 points, the equivalent of 1.6 per cent, closing at 19,885.94, its highest closing level since June 10.
When the market opened today, the index again went over the 20,000 mark and remained there all morning.
In the past five days, the index had gained over two per cent. Because the market has been performing well recently, that figure may not look impressive. However, when viewed over a more extended period of one month, it becomes clear that the market has gained over nine per cent. That shows how well the market has recovered in the past weeks.
In the past three months, the loss of the index stands at 0.22 per cent, a sign that the market has almost wiped out the losses it suffered in the past three months.
What remains is for the index to meet its levels from six months ago and one year ago. However, the stock market cannot be predicted how the weather is predicted. What is evident is that the Canadian economy is resilient.
Investors seem to have put the news and effect of the Russian invasion of Ukraine behind them. Published half-year results of many Canadian companies showing good performances also helped buoy investors’ optimism.
In mid-July, figures released by the Canadian Real Estate Association (CREA) for June 2022 disclosed a drop of 1.9 per cent in the seasonally-adjusted national Home Price Index (HPI). When the country’s two priciest markets — Vancouver and the GTA — are excluded, it showed that Canada’s national average house price fell by $114,500 relative to June 2021.
Canada’s inflation figures are expected to be announced next week. But there are hopes that inflation may drop, given the fall in prices, especially in oil prices, in the past weeks. If the consumer price index drops, it is expected that the Bank of Canada will reduce its aggressive raising rates. This week, the United States released its inflation figures, showing a drop from the 9.1 per cent witnessed in June to 8.5 per cent in July.
With the stock market showing signs of recovery, more investors will naturally come into the market to take advantage of that rise. However, it is time for savvy investors to be cautious and not be carried away by the new-found optimism of fair-weather investors, who only invest when the market is bullish but disappear when it is bearish.
Let’s look at the stories that attracted our readers’ attention this week. Sectors of interest include technology, finance and mining.
Datametrex AI Limited (TSXV:DM) introduces the mobile charging cart
Datametrex AI, subsidiary of Datametrex Electric Vehicle Solutions (DM EVS), is introducing the mobile charging cart to commercial spaces in Vancouver.
The mobile charging cart allows for an easy-to-move, mobile and fast-charging solution that can be installed anywhere EV charging is needed, without taking up large spaces in underground parking lots like the traditional EV charging station.
Marshall Gunter, CEO of Datametrex, sat down with Sabrina Cuthbert to discuss the news.
Datametrex AI Ltd dipped 4.55 per cent within the week, trading at C$0.10 as at 11:29 a.m. ET.
Black Tusk Resources (CSE:TUSK) reports geophysical survey results on the PG Highway Project
Black Tusk Resources has summarized results from geophysical surveying on the PG Highway (PGH) property north of Val d’Or, Quebec.
TMC Geophysique completed deep-penetrating Pulse-EM (Time Domain Electromagnetic, TDEM) surveying designed to test a one square kilometre area through geologic assessment and rock sampling. Rock samples obtained by Black Tusk returned significant values of copper, silver and zinc.
Richard Penn, President & CEO of Black Tusk Resources, sat down with Sabrina Cuthbert to discuss the results.
Black Tusk Resources Inc was unchanged within the week, trading at C$0.020 at 10:14 a.m. ET.
Fineqia International Inc. (CSE:FNQ) upsizes private placement
Fineqia International has upsized its non-brokered private placement for gross proceeds of up to $5 million.
The company will issue up to 500,000,000 units for $0.01 per unit.
The company has closed the first tranche of the offering, raising gross proceeds of $345,000.
Bundeep Singh Rangar, CEO of Fineqia, sat down with Sabrina Cuthbert to discuss the capital raise.
Fineqia International Inc was unchanged in the past five days, trading at C$0.0050 at 11:12 a.m. ET.