The TSX cashed in on optimism in energy stocks with a slight gain of 0.07 per cent.
The result marks the index’s fourth straight week of gains.
Energy stocks added 1.04 per cent thanks to favourable U.S. economic growth data – 2.9 per cent in Q4 2022, despite a 1.1-per-cent drop in MoM retail sales in December – and recovering Chinese demand.
China reported that domestic tourism has reached just under 90 per cent of pre-pandemic levels, while Europe’s ban on Russian oil products next month will further constrict global supply.
WTI was harbouring a loss of 1.99 per cent at US$79.40 per barrel at market close.
Materials stocks led in the loss column, shedding 0.74 per cent on weakness in precious metals.
Canadian equity gains were offset by uncertainty surrounding a series of interest rate announcements next week, including the U.S. Federal Reserve, the European Central Bank and the Bank of England.
The U.S. Fed’s decision will have considered lower consumer spending and the easing of its preferred inflation measures in December.
The tech-heavy NASDAQ still managed to close off the week by adding 0.855 per cent, while the total U.S. market gained a more tentative 0.245 per cent, offset by lacklustre results from Hasbro, Chevron and Intel.
Last Wednesday, The Bank of Canada (BoC) signalled a conditional pause in rate hikes after its 25-basis-point move. It is the first major central bank to do so.
The BoC will be paying close attention to unemployment for future signals of action as businesses digest an expected interest rate-induced pullback in consumer spending.
According to Statistics Canada, job vacancies fell by 2.4 per cent to 850,300 in November, a 14-month low.
The BoC predicts a peak unemployment rate of 6.7 per cent to reach normal job vacancy levels. This is a far cry from the December figure of 5 per cent and an even farther one from a high of 8.6 per cent during the 2008 financial crisis.
Motivated by the lack of staying power for recent equity market strength, given widespread expectations of an economic slowdown in 2023, TMH readers have shifted their attention back to energy and financial stocks, whose essential businesses are better equipped to thrive in a down market:
RevoluGROUP Canada (TSXV:REVO) issues international expansion update
Steve Marshall, RevoluGROUP Canada’s CEO, sat down with Sabrina Cuthbert to discuss the company’s international expansion efforts.
Highlights include RevoluTRANSFER’s addition of 27 countries to its coverage, bringing the total to 103, as well as RevoluSEND’s network growth from 120 to 133 countries.
The company’s diversified global reach is poised to generate additional value through a recent binding equity investment agreement.
The potential buyer is a European financially regulated entity allied to a UAE-based financial consultancy firm.
RevoluGROUP Canada deploys advanced technologies in banking, mobile apps, money remittance, cross-border forex payments and blockchain systems, among others.
RevoluGROUP Canada (REVO) closed down by 9.45 per cent over the past week, trading at $0.335 per share.
Orford Mining (TSXV:ORM) launches drill program on the Joutel Eagle South Gold Zone
Orford Mining has mobilized a diamond drill to the Joutel Eagle Gold Property in Quebec to begin a 2,000 m program on the South Gold Zone.
Joutel is highlighted by multiple gold zones to guide Orford’s exploration efforts.
Historical drilling results at South Gold reach up to 14.7 g/t gold over 0.64 m within a larger mineralized interval grading 1.11 g/t over 20.64 m.
President and CEO David Christie sat down with Sabrina Cuthbert to discuss the 2023 exploration program.
Bolstered by gold-bearing systems and nickel/copper/gold showings at its Qiqavik and West Raglan properties, the company’s highly-prospective land package in the Cape Smith Belt and strategic holdings in the Abitibi offer shareholders considerable exploration upside in one of the world’s most attractive mining jurisdictions.
Orford Mining is a gold explorer focused on highly prospective and underexplored areas of northern Quebec.
Orford Mining (ORM) closed down by 25 per cent over the past week, trading at $0.06 per share.
Trillion Energy (CSE:TCF) receives December gas revenue for SASB
Trillion Energy’s December revenue from the SASB natural gas field came to US$2,342,633 after royalties.
Its 49-per-cent share of production was 87.4 MMcf.
VP of Corporate Development Colin Robson joined Sabrina Cuthbert to discuss the news.
The company recently added new wells to ramp up production and continue capitalizing on elevated fuel prices due to Russia’s fading role in global crude markets.
As of December 2022, the SASB has produced 41 BCF of gas.
The operational benefits from a pipeline tied into an onshore natural gas production plant capable of 75 MMcf/day, expandable to 150 MMcf/day, which should help Trillion reach its expected 2023 EBITA of over US$100 million at US$30 gas.
The company’s OPEX is less than US$1/MCF plus a royalty of 12.5 per cent, while gas sales over the past few months have been finalized at over US$30/MCF.
Trillion is an oil and gas producer with assets throughout Turkey and Bulgaria. It owns 49 per cent of the SASB natural gas field, one of the Black Sea’s first and largest-scale natural gas development projects.
Trillion Energy (TCF) closed up by 2.63 per cent over the past week, trading at $0.39 per share.