This week is set to be the best for the Canadian stock market in the last three months.
The Toronto Stock Exchange’s S&P/TSX composite index was heading for its consecutive fourth positive day of the week. The stock market did not open on Monday, May the 23rd, for the Victoria Day holiday.
Unlike last week when the graphical representation of the index looked like two pyramids with a half pyramid terminated at its zenith, the index for this week looks like a green hill rising in an undulating but consistent manner.
The good times had begun on Thursday of last week and had continued the next day. The weekend and the public holiday on Monday did not break the positive streak, for even though the index faced south in the morning of Tuesday, it soon changed course by midday and faced north, ending on a positive note. That buoyancy has continued all through the week.
On Friday, Canada’s main stock index opened at a high, buoyed by gains in technology and cyclical shares. At 9:47 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 87.44 points, or 0.43 per cent, at 20,619.62.
By late morning, the stock index had recorded a triple-digit rise, with gains in the energy and technology sectors helping to give it a fillip. The S&P/TSX composite index was up 135.28 points at 20,667.46.
Across the border in the USA, the stock markets also recorded positive results. The Dow Jones industrial average rose 298.44 points to 32,935.63. The S&P 500 index was also up 64.39 points at 4,122.23, while the Nasdaq composite was up 276.92 points at 12,017.57.
The mood in global markets was upbeat with the Federal Reserve minutes made public earlier this week dispelling fears of looming aggressive interest rate hikes.
In the Canadian stock market, technology stocks led the gains with a 1.5 per cent rise. E-commerce company Shopify led the charge, gaining 2.8 per cent, while consumer discretionary shares fell 1.12 per cent.
Pot producer Aurora Cannabis took the biggest hit, falling 32 per cent to drop to the bottom of the index after it upsized its previously announced bought-deal financing. Canopy Growth Corp stock value lost 14.6 per cent after it reported a larger adjusted core loss for the fourth quarter, as demand for cannabis fell from COVID-19 lockdown-induced highs.
Healthcare shares went down 5.4 per cent, while the energy sector lost 0.2 per cent, depressed by weaker prices of crude.
The financials gained 0.8 per cent, with the National Bank of Canada making a rise of 2.6 per cent, leading gains after its second-quarter profit beat estimates on lower-than-expected provisions for credit losses.
The benchmark index, which has gained 2 per cent so far this week, was on track to post its best weekly gain since early February.
By noon ET, the index, which opened the day at 20,287.10, had moved to 20,686.08. The gain continued by 2 p.m. ET when it rose to 20,721.17. By 3.p.m. ET had moved further up to 20,757.34, with a strong sign that it would end in positive territory by the close of the market at 4 p.m. ET.
The Canadian dollar exchanged for 78.42 cents US compared with 78.17 cents US on Thursday.
The July crude oil contract was down 64 cents at US$113.45 per barrel. Similarly, the July natural gas contract was down 22 cents at US$8.68 per MMBtu.
The August gold contract was up US$2.30 at US$1,856.20 an ounce, and the July copper contract was up four cents at US$4.30 a pound.
Market movers
With the ears to the ground on global happenings, our readers have shown more interest in technology and energy stories this week.
Nano One Materials agreed to acquire all of the outstanding shares of Johnson Matthey Battery Materials for $10.25 million.
ARHT Media announced the launch of CAPSULE, ARHT’s latest touchscreen 4K hologram display.
TriSummit Utilities signed an agreement with a subsidiary of AltaGas Limited to acquire utilities in Alaska for approximately C$1 billion.
Canadian Net REIT acquired four commercial properties in Nova Scotia and Quebec for $18,800,000.
Cabral Gold announced a public offering of units for gross proceeds of up to $5 million.
Capital raises for the week include Cabral Gold, Karora Resources, Tinka Resources, Plato Gold Corp, Premium Brands Holdings, Voyager, Cassiar Gold, and Chakana Copper.
Enjoy your weekend. See you next week.
