The week in Canadian markets is ending with an equity rebound after Russia’s invasion of Ukraine.
The TSX is up by 1.39 per cent as of 2:00 pm EST supported by higher-than-expected earnings from CIBC and National Bank, which follow Royal Bank’s favorable results from yesterday.
The financial sector, which encompasses roughly one third of the index, will enjoy increased lending revenue if the Bank of Canada begins raising its benchmark interest rate on March 2nd.
The U.S. market, which managed to avoid yesterday’s route due to its independence from Russian oil, is up over 2 per cent in early-afternoon trading with emerging markets and international developed markets up 0.79 and 1.31 per cent, respectively.
The bounce back comes after the international community instituted severe sanctions against Russia’s exports, elites and financial system.
The U.S. and Europe are imposing penalties targeting 70-80 per cent of Russia’s banking assets, hampering its ability to transact in dollars and euros. They are also limiting Russian access to technology tied to defense, transport and communications.
Canada is joining its allies in cutting off Russian banks, as well as its wealthiest citizens and politicians, while doing away with Russian export permits worth hundreds of millions of dollars. It is also expediting Ukrainian immigration applications to support those fleeing the conflict.
The sanctions are likely to raise Russian inflation and weaken its hold on global commodities, though its oil exports remain untouched due to Europe’s outsized reliance on them.
Investors are also finding comfort in Russia’s willingness to engage in diplomacy with Kyiv at the suggestion of China’s Xi Jinping, though air-raid sirens continue to blare across the country as invading forces target civilians and the military alike.
NATO members will convene for a virtual summit today to strategize around the Ukrainian situation.
In the meantime, Canadians can expect a modest bump in prices at the pump this weekend, as Russia, the world’s third largest oil producer, contemplates its next move.
Both West Texas Intermediate and Brent crude have retreated below US$100 per barrel after initial spikes driven by the conflict. Gold was also down over 2 per cent after crossing a September 2020 high during yesterday’s trading.
The top five stories this week originate from five different industries, which suggests an abundance of opportunities for investors as economies return to full capacity. Let’s take a closer look.
Else Nutrition (TSX:BABY) concludes successful preclinical study of plant-based infant formula
Else Nutrition has concluded a preclinical study of its plant-based, soy-free infant formula on the pathway to bringing it to market.
The study demonstrates the formula’s safety and nutrient bioavailability for the purposes of regulatory approval.
CEO Hamutal Yitzhak sat down with Shoran Devi to discuss the news.
Else Nutrition (BABY) is up by 0.87 per cent over the past week trading at $1.16 per share as of 12:36 pm EST.
Resverlogix (TSX:RVX) steps up Phase 2b study for COVID-19 treatment
Resverlogix has initiated the first Brazilian and a second Canadian site for its Phase 2b clinical trial for the treatment of COVID-19.
The study will evaluate the safety and efficacy of apabetalone as a potential oral treatment for COVID-19.
The company is prepping for a third Canadian site in Toronto and five additional sites in Brazil.
President and CEO Donald J. McCaffrey joined Shoran Devi to discuss the study.
Resverlogix (RVX) is down by 4.23 per cent over the past week trading at $0.68 per share as of 12:24 pm EST.
Ayurcann Holdings (CSE:AYUR) reports record sales and positive operating income in Q2 2021
Ayurcann reported increased revenues of 106 per cent and increased gross margins of 500 per cent YoY.
The company expects to build on its momentum with continued growth.
CEO Igal Sudman spoke with Shoran Devi about the company’s success.
Ayurcann (AYUR) is down by 2.94 per cent over the past week trading at $0.165 per share as of 12:34 pm EST.
Gran Tierra Energy (TSX:GTE) announces Q4 2021 & year-end results
The company returned to strong growth in 2021 in production, reserves, free cash flow and fund flows from operations.
It is planning drilling programs on multiple projects in 2022 supported by US$100-US$120M in forecasted free cash flow.
CEO Gary Guidry sat down with Shoran Devi to discuss the results.
Gran Tierra Energy (GTE) is up by 2.71 per cent over the past week trading at $1.70 per share as of 12:43 pm EST.
Nextech AR Solutions (CSE:NTAR) (OTCQB:NEXCF) continues to see strong demand for its ARitize 3D and Metaverse suite
Nextech AR announced the signing of multiple 3D model augmented reality e-commerce deals across a number of industries.
CEO Evan Gappelberg joined Shoran Devi to discuss the new business and the forces driving the adoption of 3D models and metaverse products.
Nextech AR (NTAR) is up by 0.80 per cent over the past week trading at $1.26 per share as of 12:48 pm EST.
Join us next Friday afternoon for your weekly recap of Canadian markets and top trending stories on The Market Herald Canada.
