The TSX closed down by 1.54 per cent led by losses in energy and materials stocks.
The TSX Capped Materials Index closed down by 3.67 per cent.
The TSX Capped Energy Index closed down by 2.95 per cent.
Commodity companies reacted to Canadian domestic factory sales falling for a fourth straight month, according to Statistics Canada, as well as Russian President Vladimir Putin’s recent remarks about halting further military mobilization in Ukraine and the catastrophe of a potential clash with NATO.
Canadian factory sales shed 2 per cent in August to C$70.4 billion, marked by lower volumes and demand for petroleum, coal and chemicals. Petroleum and coal sales fell by 3.9 per cent to $9.9 billion, while chemical manufacturing sales fell by 4.5 per cent to $5.6 billion.
Overall manufacturing sales fell 1.7 per cent for the month, indicating that rising prices and recessionary fears are beginning to nudge consumers toward increasing cash reserves.
Additionally, Canadian home sales dropped by 3.9 per cent in September, reaching 12 per cent below the pre-pandemic 10-year average, as rising mortgage rates increase the potential for defaults while pricing more Canadians out of the market.
The TSX followed the S&P 500 and Nasdaq 100 lower as they digested a University of Michigan survey detailing higher year-ahead inflation expectations in October, which is unsettling for the Federal Reserve and its efforts to keep sentiment in check against 6.6 per cent core inflation YoY, the highest reading since 1982.
The overall Consumer Price Index, including food and energy, was up 8.2 per cent YoY in September, down from 8.3 per cent in August and 9.1 per cent in June, though high prices have only broadened across the economy.
On September 21, Fed Chair Jerome Powell was clear about the pressing need for further rate hikes and the struggles they will cause for low-income Americans.
U.S. retail sales, for their part, were flat in September, pointing to inflation beginning to set a cap on consumer purchases.
The Bank of Canada’s next interest rate announcement and monetary policy report is scheduled for October 26, with consensus seeing another aggressive hike on the way to the institution’s target 2 per cent rate.
Canadian inflation slowed to 7 per cent in August, down from 7.6 per cent in July and 8.1 per cent in June. Lower gasoline prices largely drove the two consecutive months of slowdowns.
As industries lower inventories and adopt more conservative expectations, and consumers tighten their budgets to ensure the coverage of basic needs, our readers gravitated toward three stories this week from companies positioned to excel in spite of growing risk-off sentiment.
Star Navigation has signed a letter of intent (LOI) with LAPSSET Corridor Development Authority to sell its tracking and monitoring technology.
The LAPSSET Corridor Project is Eastern Africa’s largest and most ambitious infrastructure project, bringing together the governments of Kenya, Ethiopia and South Sudan via the development of airports, highways, oil pipelines, railways, dams, ports and resort cities.
The deal increases Star’s exposure to a key catalyst in the emerging markets, opening it up to longer-term relationships as the transportation industry bounces back from pandemic lows.
Star’s CEO, Amir Bhatti, sat down with Daniella Atkinson to explain how the Corridor Project will deliver socioeconomic development and prosperity to hundreds of millions for generations to come.
Star Navigation Systems Group focuses on manufacturing in-flight safety monitoring systems.
Star Navigation (SNA) closed down by 14.29 per cent over the past week, trading at $0.03 per share.
SoLVBL Solutions (CSE:SOLV) to acquire digital entertainment company Darkhorse Films Limited
SoLVBL Solutions will acquire Darkhorse Films, a U.K.-registered blockchain-powered digital entertainment and e-commerce business.
The acquisition provides SoLVBL with a potentially lucrative revenue stream in the film, content production and film distribution markets.
It also grants SoLVBL access to Darkhorse’s worldwide digital relationships, accelerating its efforts to establish a presence in the European and North American cybersecurity markets.
From a 10,000-foot view, the Darkhorse ecosystem enables traditional and digital asset sales directly to customers, putting SoLVBL in a position to capitalize on the personalized future of entertainment consumption.
President and CEO Kaiser Akbar spoke with Sabrina Cuthbert about the news.
SoLVBL is a cybersecurity and data authentication company.
SoLVBL Solutions (SOLV) closed unchanged over the past week, trading at $0.025 per share.
Power Metals (TSXV:PWM) intersects high-grade cesium at its Case Lake Property
Power Metals announced drill results from the West Joe Dyke at its Case Lake Property in Cochrane, Ontario.
Intercepts reached as high as 4.75 per cent Li2O and 24.07 per cent Cs2O.
Cesium (scintillation counters, atomic clocks, conversion of ionizing radiation to light) and lithium (rechargeable batteries for mobile phones, laptops, digital cameras and EVs) are minerals critical to the electric and nuclear transition with supply chains currently unfit to meet projected demand.
There are only two pegmatite mines engaged in cesium production, one in Zimbabwe and the other in Australia.
According to the International Energy Agency, the world could face lithium shortages by 2025, due to rising EV demand and the concentration of miners in disparate locations with high water stress.
Chairman Johnathan More joined Sabrina Cuthbert to discuss the results, which he sees as “creating massive value” for the property.
Power Metals is a mining company exploring and developing cesium, lithium and tantalum assets in Canada.
Power Metals (PWM) closed up by 8.33 per cent over the past week, trading at $0.20 per share.
Tune in next Friday afternoon for another survey of our readers’ most prospective investment opportunities of the week.
