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After raising the blood pressure of investors by falling to its lowest level in a year, Canada’s main stock index rebounded on Friday, offering investors a temporary reprieve.

On Thursday, the Toronto Stock Exchange’s S&P/TSX Composite Index had ended the day down 138.20 points, or 0.7 per cent, at 19,699.05, recording its lowest closing in a day since May 2021.

Wednesday’s closing figure had followed the same sad pattern, down 52.81 points, or 0.3 per cent, at 19,837.25. It was the lowest closing level of the TSX since July 2021.

On the global scene, Thursday was a day of slaughter in the cryptocurrency market, as it lost a whopping US$200 billion in a single day, extending the woes of investors.

With Thursday’s closing figures, the Toronto Stock Exchange’s S&P/TSX Composite Index recorded its consecutive sixth-day loss. That was its longest losing stretch since August of 2021. Fears were raised that the index could be moving toward correction territory.

But with only one business day left in the week, the index staged a comeback and gave investors something to share as they move into the weekend. The index was buoyed by the energetic movements of the energy and technology stocks.  

At 9:47 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index had risen 268.42 points, or 1.36, at 19,967.47.

The technology sector rose 4.3 per cent, replicating the gains in U.S. tech-heavy Nasdaq index. Shopify Inc rose 10.6 per cent, giving the technology sub-index a critical push.

The energy sector went up 3 per cent, supported by a rebound in crude prices.

Healthcare stocks gained 3 per cent, propelled by cannabis producers Canopy Growth, Cronos Group, Aurora Cannabis which recorded gains of between 4.2 per cent and 5.7 per cent.

The materials sector, which consists of precious and base metals miners and fertilizer companies, gained 0.7 per cent, while the financial sector added 0.9 per cent.

By 3.00 pm ET, the S&P/TSX Composite Index was still powering home at 405.21 points, or 2.06 per cent, at 20,104.26. It looked almost certain that the index would close the day on a positive note. However, Friday’s solo run might not be enough to pull the index out of a loss for the week.

The index, which dropped 3.3 per cent this week, was heading for its seventh consecutive week in losses, caused by a recent sell-off in equity markets in reaction to an aggressive policy tightening by central banks to curb inflation.

On the data front, Canada recorded an increase in motor vehicle sales in March. Sales figures for motor vehicles rose to 144.6 thousand in March, from 105.6 thousand in February.

On Thursday, bitcoin fell below US$26,000 for the first time in 16 months, amid a broader sell-off in cryptocurrencies that wiped out more than US$200 billion from the entire market in a single day.

The price of bitcoin plummeted as low as US$25,401.29 on Thursday, according to Coin Metrics. It was the first time the cryptocurrency had fallen lower than the US$26,000 level since Dec. 26, 2020.

Bitcoin has since recovered some of its losses and was last trading at $28,569.25, down 2.9 per cent.

Ether, the second-biggest digital currency, crashed to as low as $1,704.05 per coin. It is the first time the token has fallen beneath the $2,000 mark since June 2021. Ether was last down 8.8 per cent at a price of $1,937.88.

As the week winds down, investors look forward to the release of Canada’s inflation report for April next Wednesday. The Bank of Canada has been responding to rising inflation with an increase in lending rate. Investors wait to see which way the cat will jump on Wednesday.

Market movers

Over the last half of the week, our readers have been showing interest in diverse sectors. However, cannabis, mining, technology, energy and consumer attracted them the most.

Desert Mountain Energy reports compelling helium grades.

Patriot Battery Metals takes ownership of the Corvette Property.

NuVista Energy reports a record-breaking quarter and returns shareholder capital.

Pantera Silver mourns director, Tyler Lowes.

Koios Beverage partners with Berkshire Hathaway-owned distributor.

The capital raises that were announced in the past three days include Voxtur Analytics, AJN Resources, The Limestone Boat Company, and P2 Gold.

Till next week when we return with another market summary, enjoy your weekend and keep investing with caution and expert advice.

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